Edcon group which owns the famed Edgars and Jet stores is reportedly axing 22 000 of its employees.
According to Times Live, the group has already served its employees with retrenchment notices blaming the collapse on the coronavirus outbreak and the ordered lockdown – and is now seeking buyers while dealing with poor sales and debt.
Back in April, the group issued a statement revealing that they have lost R2bn in sales since the lockdown.
Per statement:
- “The R2.7bn (circa R230m of which was still due to be received to March 2021) cash provided to Edcon in the last restructuring has been substantially utilized funding the losses for the financial years ending March 2019, and March 2020, as planned. Edcon was on track with its business plan to the end of December 2019”.
- “The R2bn of lost sales during the Covid-19 crisis period which included the necessary “social distancing” measures, lockdown and extended lockdown, has consumed the Group’s remaining cash”.
- “Edcon’s stores will open on the 1st May, but we will have do so under “Business Rescue”.
- “We will be working closely with the appointed Business Rescue Practitioners, shareholders, and government to find a way to plug the financial hole”.
Source: TimesLive
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