What’s threatening Stuttafords’ rescue?
Ellerines backs away from a R12m payment because ‘Stuttafords had not met key terms for the deal’
A dispute has erupted between Stuttafords and Ellerine Bros, which could bring the former’s business-rescue plans to an unseemly end. In March, creditors approved a proposal by Ellerines to inject R12m into the failing retailer for a 76% interest. Ellerines would subscribe to 600,000 shares in the company at a price of R20 per share. However, Ellerines appears to have had a change of heart, which could prohibit or delay the implementation of the plan. In a blistering exchange of attorney’s letters seen by Business Day, business-rescue practitioners John Evans and Neil Miller requested Ellerines to indicate whether it still intended to pay the R12m.
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