Unidentified investors rescue debt-laden Edcon
Grant Pattison, Edcon CEO, says the company is working on detailed clauses of the final agreement.
Struggling retailer Edcon has been fighting to get ahead of weak consumer spending and slower economic growth in South Africa. In 2016, it was taken over by banks and bondholders. Now the company is making deals with unidentified investors.
The non-binding agreement reached between Edcon and 250 stakeholders, including its shareholders and landlords, is meant to recapitalise and avoid selling some of the business.
According to the Sunday Times, Edcon CEO Grant Pattison said that basic terms have been agreed and the company is putting in place “detailed clauses of the final agreement.”
Edcon’s third-party debt climbed 67 percent from R4.2 billion in 2017 to R7 billion at the end of June 2018.