In the dour industrial surroundings of Edgardale in Jo’burg, Edcon this week drew the veil back on a rescue package that it hopes will help restore it to the apex of SA’s fashion hierarchy.Edcon has been battling to keep its head above an ever-rising tide of debt — R26.7bn at last count — which had sunk its ability to compete with rivals such as Cotton On, Zara and even Woolworths.This debt was heaped on the company in 2007, when Boston-based Bain Capital swept into town and announced it would buy Edcon for R25bn in the largest private equity deal in SA corporate history.But Bain’s gamble failed.It overpaid initially and the 2009 financial crisis saw consumer spending dry up. It will now cut its losses and slink away, having sunk R6.4bn into Edcon and got back not a cent.It’s a monumental failure that will, for years to come, remain a cautionary tale for other global private equity players considering taking a punt on SA."We have been living beyond our means," said CEO Bernie Brooke...
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