JOHANNESBURG (Reuters) – South African retailer Edcon launched a cost-cutting plan that may include jobs cuts, it said on Tuesday, as the debt-burdened company tries to save money to pay down debt.
“This process may result in a reduction of headcount within Edcon’s head office. We cannot confirm numbers as yet,” the company said in statement.
Concerns are growing about Edcon’s ability to repay bondholders after Morgan Stanley published a note in September supporting a short position of the company’s debt, saying the capital structure was “unsustainable”.
