Debt deadline threat to Edcon's shaky empire
Break-up of group on the cards if creditors reject restructuring
Edcon's corporate strategy is a tale of four men who tackled but failed to solve the group's legacy problems. The first was American Stephen Ross, appointed after Boston-based management consultancy Bain bought Edcon for R25-billion 11 years ago. Then came German Jurgen Schreiber, who tried to nurse the company back to health by introducing more international brands. He was soon followed by Australian Bernie Brookes, who valiantly attempted to list the company. Now there's South African Grant Pattison, who may be the instigator of Edcon's break-up. And with an impending deadline of less than three months to get its house in order, the Edcon as we know it - owning brands such as Edgars, CNA and Jet - may be a thing of the past. Last month, the retailer secured a R500-million bridging loan to help support its liquidity needs while a long-term capital structure solution is finalised. But this may have been the final nail in the coffin for Edcon, as the maturity of this facility is on S...
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