RECAPITALISATION PLAN
Distressed Edcon appeals to PIC for rescue funding
Struggling retailer Edcon is in talks with the Public Investment Corporation (PIC), in a bid to raise funds to keep it afloat. The PIC, which manages about R2-trillion on behalf of government employees and other social funds, confirmed it was in talks to rescue the owner of Jet, Edgars and CNA. Although the total amount required by Edcon is unknown, it is estimated at about R3bn. Edcon, which operates 1,350 stores and employs 21,000 people across southern Africa, has been struggling in a difficult economy to adapt to a rapidly changing retail environment. The group’s inability to cope with these changes has forced it to negotiate with 250 stakeholders, including its shareholders and landlords, to save its operations. Though it has long been speculated that the PIC could come in as a shareholder, spokesperson Sekgoela Sekgoela confirmed on Wednesday that it had received a proposal on Edcon and would make a decision after subjecting it to investment processes. "The Edcon board has app...
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