Today's Labour News

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edconBL Premium reports that Edcon, SA’s biggest corporate causality of Covid-19-induced economic distress, may still be saved according to its business rescue practitioners (BRPs).  

Like other retailers, Edcon was forced to shut its stores after the government suspended all non-essential shopping.  But with a weak balance sheet, it was forced to file for business rescue two weeks ago.  “It is the view of the BRPs that, notwithstanding inevitable risks and challenges, there is a reasonable prospect of rescuing the company,” the BRPs Piers Marsden and Lance Schapiro told creditors this week.  That assessment paves the way for them to devise a plan to save the retailer, which employs 17,500 permanent workers and 5,000 seasonal workers.  Creditors such as the Public Investment Corporation (PIC), which manages the pension investments of public servants, are due to meet again in mid-June to consider and vote on whether a business rescue plan is the best way to recoup their investments.  “We believe that the business rescue process will achieve a better outcome for all stakeholders than a liquidation,” the BRPs indicated.  They have suggested that a creditors’ committee be set up to enhance the process.  Committees should also be set up for employees, landlords and lenders to “assist in achieving the goals set out in the business rescue plan”.

  • Read the full original of the report in the above regard by Alistair Anderson at BusinessLive (paywall access only)

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