JOHANNESBURG (Reuters) – The Ellerine furniture arm of failed South African lender Abil is in talks to sell two more brand names, Wetherlys and Geen & Richards, its business rescue administrator said on Thursday.
The retailer with debts adding up to around 1.3 billion rand ($111 million) and was forced into business rescue, which allows for temporary protection from creditors, after parent African Bank Investments (Abil) cut funding last year.
@alechogg G+R does have value. Wetherly's so run down doubt it worth anything at all. Sad to see all closed Ellerine stores around country
— Syd Vianello (@Siddels1000) January 9, 2015
@jdrsampson @Siddels1000 Surely they do? I'd love to get hold of the right media brand that's been mismanaged. Brand memories can be long.
— Alec Hogg (@alechogg) January 9, 2015
“We are in the process of selling the brand names,” Les Matuson, one of the administrators in charge of Ellerine’s business rescue, told Reuters. He declined to disclose the amounts involved.
Last month, Shoprite received competition authorities’ nod to take up the leases of the high-end Wetherlys stores.
Ellerine already has approval to sell about 63 stores of its Beares brand to Lewis Group for $8 million and also has the go-ahead to dispose of Dial-a-Bed to Coricraft.
It also has a 400 million rand ($34 million) indicative offer for stores outside South Africa, which Matuson said was from a listed South African retailer.
Other Ellerine brands include Ellerines stores and Furniture City.
($1 = 11.6265 rand)
