Clothing retailer Edcon has been given some breathing room by its lenders as it struggles for survival. On Friday the group, which confirmed earlier this week that it was in talks with its funders and other stakeholders, said its lenders have extended waivers to allow time for the implementation of its restructuring and recapitalisation.
Edcon CEO Grant Pattison said the group’s board has approved the proposed recapitalisation plan, but he did not give more details on what it entails, citing confidentiality.
Pattison said the support extended by their lenders will give Edcon enough time to complete the due diligence and governance processes necessary to implement the plan.
“The board fully appreciates the support that is being received from all group stakeholders and the commitment that has been shown,” he said, adding that the group will make more announcements in due course.
Last week Edcon said it was also looking for shareholders, new and old, to inject capital into its business. The group has been struggling to stay afloat with a debt that has risen to more than R7bn while its clothing and footwear market share has shrunk to less than 30%.