Against all odds, Edcon looks set to mark its 90th anniversary in September, brought back from the brink by last-minute financial life support from banks, landlords and the Public Investment Corporation (PIC). The group was set to run out of cash at the end of February, but the latest recapitalisation injects R2.7bn into the country's largest nonfood retailer, its second in two years and third in total. Edcon CEO Grant Pattison said he believed the group had a fighting chance "but it's not a slam dunk". What sets this recapitalisation apart from those that came before is that it leaves the group debt-free, so earnings can go towards operations. Pattison said that in the first two recapitalisation deals the businesses underperformed in terms of the business plans. Will a turnaround happen this time? "I think there's a chance it will happen. It requires management to implement well and it requires the economy and consumer economy to stabilise. "People are excited. They think Edgars an...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now