Edcon has announced that it will file for business rescue.
The group says its board passed a resolution authorising it to file for business rescue in the next few days.
The company says it has lost R2-billion in sales since the announcement of the nationwide lockdown amid the coronavirus pandemic.
Edcon which owns the brands Jet and Edgars, says it will open doors when some lockdown restrictions are lifted on Friday.
The business rescue allows it to continue trading while its affairs are restructured to avoid liquidation.
The company says paying April salaries will require assistance from the UIF and the COVID-19 Temporary Employee/Employer Relief Scheme.
Edcon’s troubles started in 2007, when it was bought by private equity company Bain for a then-record R25-billion.
A decade of underinvestment meant Edcon lost market share and fell far behind its rivals.
Source – eNCA
