TFG Buying the Best Parts Of Edcon
The Foschini Group Limited are buying up parts of Edcon from the Business Rescue Practitioners. Mostly this consists of the Jet brand and stores.
As the Covid-19 pandemic and lockdown slaughtered retail buying Edcon became the first of many businesses to decide to pull the plug and admit they need help. Edcon entered business rescue and is now looking to sell off part of their operation to try settle bills and streamline operations.
Though The Foschini Group (TFG) initially said they were not interested, they have now begun a deal that will see them take over the Jet brand and 371 Jet stores. The deal also includes a distribution centre in Durban, Millions in Stock and a small number of stores in Botswana, Eswatini, Lesotho and Namibia.
‘a deal that will see them take over the Jet brand and 371 Jet stores.’
TFG will not be taking over all the existing Jet stores, as some have been reported by the business practitioners as simply not being profitable. As such, they will not be taking on around 90 stores that are not as attractive out of the brands over 460 stores across SA.
TFG will also acquire rights in the Jet Club and take on some head office staff who are vital to running the brand. For a while, the new owners will make use of some the services of the former owners during a transition period to keep things running smoothly before bigger changes are made to software and staff etc.
TFG already have 2577 stores in their organisation and will now be adding around 400 more to the mix through this deal. The purchase is set to amount to around R480 Million. Not a bad deal for the well known brand, nearly 400 stores and R800 million in stock.