UIF helps 'too big to fail' Edcon
As many as 31 landlords agreed to reduce rent for Edcon stores in exchange for a stake in the business
Edcon, the owner of Edgars, has secured a deal with its landlords, the Public Investment Corporation (PIC) and banks that will inject R2.7bn into the business and give it, yet again, critical breathing space to turn operations around. The deal announced on Friday will see new shareholders investing R2.7bn in SA's largest nonfood retailer. This includes the PIC, on behalf of the Unemployment Insurance Fund. The deal will leave it debt free. Edcon CEO Grant Pattison said: "Trying to get these various groups of stakeholders across the line was difficult and at any one point in time a group of stakeholders was not there." Pattison said Edcon chair Gareth Penny played a lead role with banks in London, while former Investec CEO Stephen Koseff also "played a massive role" in concluding the deal. He added that the unions had been "very supportive". Etienne Vlok, national industrial policy officer at the Southern African Clothing and Textile Workers Union, said: "Edcon more than any other re...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.