Today's Labour News

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edconBusinessLive reports that struggling retailer Edcon is in talks with the Public Investment Corporation (PIC), in a bid to raise funds to keep it afloat.  

The PIC, which manages about R2-trillion on behalf of the Government Employees Pension Fund (GEPF) and other state funds, confirmed it was in talks to rescue the owner of Jet, Edgars and CNA.  Although the total amount required by Edcon is unknown, it is estimated at about R3bn.  Edcon, which operates 1,350 stores and employs 21,000 people across southern Africa, has been struggling in a difficult and rapidly changing retail environment.  The group’s inability to cope with these changes has forced it to negotiate with 250 stakeholders, including its shareholders and landlords, to save its operations.  "The Edcon board has approved the structure of the proposed recapitalisation plan, and in response, lenders have extended waivers to allow time for implementation," an Edcon spokesperson said.  Noting that department stores such as Edcon had been struggling to adjust to an evolving retail environment, AlphaWealth fund manager Keith McLachlan commented that the business case for supporting Edcon was not that strong.

  • Read Larry Claasen’s report in the above regard in full at BusinessLive

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