Following a turbulent 2020, the Edcon group has announced that it will be selling off parts of Edgars. The buyer, Durban-based Retailability, currently owns a number of brands, including Legit – which it purchased from Edcon four years ago. After the Covid-19 lockdown commenced and economic activity came to a near halt, Edgars collapsed. The sale of the near 100-year old retailer could save many jobs, with the clothing store chain employing around 18,000 permanent staff members. – Jarryd Neves
Edcon media statement:Â
Edcon is pleased to announce that further to its media release dated 6th July 2020, the company has signed the Sale and Purchase Agreement for the sale of parts of Edgars to Retailability Pty (Ltd). Retailability is a retail fashion holding company of retail brands including Legit, Beaver Canoe, and Style, operating in over 460 stores across South Africa, Namibia, Botswana, Lesotho, and eSwatini.
Read also: Straight from the source – Edcon questions answered
The Business Rescue Practitioners commented, “We are pleased that we have taken a step closer to closing this sales transaction, which not only indicates confidence in the Edgars business but augments Retailability’s already blue-chip level of retail expertise. The signing of the Sale and Purchase Agreement is a positive step forward in meeting the objectives of the Edcon business rescue plan, which when successfully concluded, will result in the saving of a significant number of jobs and the continuation of a great iconic Edgars brand.”
Read also: Jobs could be saved at Edgars as a buyer swoops in
The closing of the transaction is targeted for September 2020 and is still subject to various conditions precedent and regulatory approvals, including the Competition Authorities. The parties will now move to work on preparing the signing of the Sale and Purchase Agreements for the Edgars business conducted in the rest of Africa.
