Edcon to file for voluntary business rescue

Edcon, whichs owns Edgars and Jet, confirmed the development on Wednesday. 

The group says it has lost approximately R2 billion in sales and recorded a decline in debt collections since the start of the national lockdown in March.

This means the company won’t be able to pay its suppliers for both March and April.

However, the April salaries will be paid with the assistance of the UIF Covid-19 TERS programme.

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Retail sales across the country’s plunged following the implementation of the lockdown.

It has been estimated that 3 million South Africans could lose their jobs as a result of the measures taken to combat the coronavirus pandemic.

Despite filing for business rescue, Edgars and Jet will open their doors on Friday.

“Edcon’s stores will open on the 1st May, but we will have do so under ‘Business Rescue’. This decision was made in the best interest of our company and all our stakeholders,” CEO Grant Pattison says.