South African Retailer Edcon Can Be Saved, Administrators Say

Administrators in charge of South Africa’s Edcon believe there is a reasonable chance of saving the retailer after it filed for a form of bankruptcy protection in April, Reuters reported. Edcon, which owns department store chain Edgars and budget clothing retailer Jet, entered “business rescue” proceedings after losing an estimated 2 billion rand ($111 million) of sales since the coronavirus pandemic reached South Africa in March. That hit, coupled with a decline in payments from customers who had bought on credit, meant the company was unable to pay suppliers and creditors in March and April. In a presentation to creditors dated May 18 and seen by Reuters, the administrators said outstanding payments for services provided and goods delivered before April 29 were subject to a moratorium. The administrators told creditors that Edcon could be saved because it had “valuable brands and market position that can possibly be preserved through business rescue”. Read more