Battling Edcon holds breath as PIC, landlords mull rent deal
Calls for ailing retail chain to chart a new path as it tries to head off risk of liquidation
The Public Investment Corporation (PIC) is likely to support flailing retailer Edcon with a R1.2bn lifeline, but a rental holiday from landlords could set a difficult precedent for the property industry. In response to questions sent to the PIC this week, including how it could justify the investment in a business that may not survive, Deon Botha, the PIC's head of corporate affairs, said: "The PIC has been approached with a proposal in relation to the Edcon situation. The proposal is being subjected to the PIC investment processes, after which a decision will be made." It is believed negotiations between the PIC, which invests government employees' pensions, and other stakeholders and Edcon were still continuing this week, though the retailer said in a letter sent to 31 of its biggest landlords last week that the PIC's investment committee had approved its request for the investment. Edcon is also seeking R700m from its lenders. Edcon CEO Grant Pattison said the company's board had...
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