Edcon signs agreement to sell parts of Edgars
The deal with Retailability was first announced in July, and Edcon hopes to close the transaction in September
Edcon’s business rescue practitioners said on Monday that they had signed a sales agreements with Retailability for part of Edgars.
The owner of Edgars and Jet stores first announced a deal in July with Retailability, the owner of Legit, Beaver Canoe and Style stores.
Retailability bought Legit clothing stores from Edgars for R637m in 2016 and runs more than 460 clothing stores across SA, Namibia, Botswana, Lesotho and Eswatini.
The closing of the transaction is targeted for September 2020, but is still subject to various conditions, including approval from competition authorities.
“We are pleased that we have taken a step closer to closing this sales transaction, which not only indicates confidence in the Edgars business but augments Retailability’s already blue-chip level of retail expertise,” Edcon's business rescue practitioners said in a statement.
Edcon was placed in business rescue at the end of April after it could not pay suppliers following weak January sales and a loss of trade when stores were closed during the Covid-19 lockdown.
Foschini owner TFG also announced in July it had made a R480m bid for commercially viable Jet stores.
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