South African retailer Edcon will file for bankruptcy protection in the next few days, it said on Wednesday, becoming the country's first major corporate casualty of the coronavirus pandemic.
JOHANNESBURG - South African retailer Edcon will file for bankruptcy protection in the next few days, it said on Wednesday, becoming the country’s first major corporate casualty of the coronavirus pandemic.
That hit, coupled with a decline in collections from debtors, meant the company, which owns department stores chain Edgars and budget clothing retailer Jet, was unable to pay suppliers and creditors in March and April, it said in a statement. In a letter addressed to creditors, suppliers and stakeholders, seen by Reuters, Chief Executive Grant Pattison said the start of the process meant a moratorium on legal and enforcement actions against the company.
Edcon has been grappling with debt for several years after troubles in its credit business in 2014 coincided with an economic slowdown. Bain Capital, which took control of Edcon in a leveraged buyout in 2007, gave up equity control in 2016 to creditors.
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