A major chunk of the costs involved in the deal that saved Edcon went on strategy consultants, says CEO Grant Pattison. In a speech this week at the Gordon Institute of Business Science, Pattison estimated that consultants received about R1bn over three years. "Be very careful of strategy consultants," he said. When a company made use of strategy consultants it was an acknowledgement that it could not do the job itself, he said in a talk about the deal that saved the apparel retailer from business rescue. "I spent two years as a strategy consultant so I know what strategy consultants do." He said they always descended in droves when a company was in trouble. Getting rid of them was "the biggest cost saving in one fell swoop" that Edcon made, Pattison said, putting the amount saved at about £1.5m (R27m) a month. "These guys were all employed from the overseas offices [of Bain Consultants and PwC]." As part of the current recapitalisation of the group there was the cost of advisers, w...

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 Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now