NEWS ANALYSIS: Edcon transaction gets a mixed reception
NEWS earlier this week that Edcon would now belong to its creditors, after a debt-to-equity transaction, has been met with muted applause by analysts. While analysts are happy the transaction will significantly reduce the group’s debt burden, they also warn that celebrations may be premature as the apparel retailer has a difficult journey ahead in its quest to change its fortunes. CE Bernie Brookes has been very frank about the hurdles 86-year-old Edcon has faced since he stepped into the top position in September 2015. "It’s been a struggle. Nobody wanted to work for us or with us. Suppliers were out of patience. If we needed 10,000 of one stock, they would perhaps give us only a 1,000. We were too great of a credit risk. "We were lousy payers. They were not getting paid on time. As you can imagine, landlords and insurers were nervous about us. Our business was not sustainable," he said. There have been a number of executive changes at Edcon. Jurgen Schreiber resigned as the MD and...
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