Moneyweb reports that sports lifestyle retailer Frame Leisure Trading, which operates The Cross Trainer, XKids and XTrends stores and which entered into voluntary business rescue in August this year, is to be liquidated.
Business rescue practitioners (BRPs) George Nell and Gideon Slabbert informed all affected persons on Wednesday that after investigating the company’s affairs and financial situation they came to the conclusion that there was no reasonable prospect of the company being rescued. An urgent application for the liquidation of the company was lodged in the High Court in Pretoria on Thursday and is expected to be heard next week. According to Nel, the company has been in business for 29 years and had 391 employees at the beginning of the year, but this had now declined to 175. At the onset of the business rescue, the company had 56 operational retail outlets countrywide, but these have now diminished to just 19. The BRPs said in a letter to affected persons that their conclusion that the company could not be rescued was based on legal and financial advice taking into consideration a number of factors. These included the inability to obtain the required financial support for the company and post-commencement financing; yhe cancellation of the company’s lease agreements by a majority of the company’s landlords; and the failure of the company to pay its employees their salaries in full for September 2024 and to meet its payroll obligations, which had created significant financial distress for the workforce.
- Read the full original of the report in the above regard by Roy Cokayne at Moneyweb
Get other news reports at the SA Labour News home page