Edcon stores to open on Friday, but still files for business rescue

JOHANNESBURG – Iconic South African retailer Edcon has filed for voluntary business rescue after losing R2billion in sales since March due to the coronavirus lockdown and its failure to secure funds to pay creditors.

Chief executive Grant Pattison said yesterday that Edcon’s stores would open on Friday, along with other businesses on the Level 4 regulations, under business rescue following a resolution by the board.

Pattison said the decision to place the country’s second-biggest retailer under business rescue was made in the best interests of the company and its stakeholders.

He said business rescue would provide the company with additional time to raise money to pay its creditors.

“In the short time that has been available to us, we have been unable to raise the funds needed to pay the creditors for the March and April month-ends,” Pattison said.