Edcon Goes Into Business Rescue
Edcon Becomes Covid-19’s Latest Victim
Edcon have begun business rescue proceedings after several weeks without any income during the lockdown.
Edcon were unable to meet their debt obligations due to the sudden loss of income from the lockdown. It is estimated that they lost out on around R2 Billion in turnover during the last few weeks of the lockdown and this sealed the deal for the already strained retailer.
‘they lost out on around R2 Billion in turnover during the last few weeks of the lockdown’
Edcon had previously received massive bailout investment help to stay afloat and were scraping by making the required debt payments up until the end of last year but things have shifted dramatically since the Covid-19 Pandemic hit local shores. The lockdown was the final nail in the coffin of hopes they could meet their obligations on time as required.
As Lockdown Eases
Edgars and Jet may still open from the beginning of May in what is termed “business rescue” mode and in line with the lockdown requirements but their future is now unsure.
For now, there is no change to their current debt review process.