End of an era for 91-year-old Edgars as it owes local and foreign creditors billions

By Vernon Wessels

(Bloomberg) – Goldman Sachs Group and hedge fund Apollo Global Asset Management are among secured creditors with claims of R3.73bn ($218m) against Edcon Holdings, the failed South African retailer.

Administrators of the Johannesburg-based company are seeking buyers for Edcon chains Edgars and Jet as well as its loyalty program, Thank U.

The 91-year-old retailer collapsed after a nationwide lockdown to curb the spread of coronavirus halted almost all business. That caused the already struggling company to burn through cash, resulting in it being placed in a local form of bankruptcy protection at the end of April.

The company’s failure comes more than a year after lenders and landlords agreed to a restructuring of Edcon’s debt in the wake of a leveraged buyout by Bain Capital Private Equity in 2007 that turned sour.

AlbaCore Capital, a firm focusing on credit and private debt, is also among creditors on a list published by Edcon’s business-rescue practitioners on June 8. Here is a list of the biggest creditors:

CreditorClaim Amount
Unemployment Insurance Fund (via PIC)    R889m
Apollo    R834m
AlbaCore    R496m
Standard Bank    R380m
Absa    R311m
Goldman Sachs Lending Partners    R174m
Investec    R157m
FirstRand’s Rand Merchant Bank    R129m
Standard Chartered    R100m
Deutsche Bank’s London branch    R84m
Growthpoint Properties    R35m
AustralianSuper    R34m
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