Giant sportswear and sneaker retailer, The Cross Trainer has entered business rescue due to South Africa’s weak economy and declining consumer spending.
With over 60 stores in the country, the retailer has faced cash-flow issues since the Covid-19 pandemic, struggling to cover its operational costs.
The company entered business rescue on 14th August 2024.
The company has named George Nell from Corporate Business Rescue as its business rescue practitioner to get the business back in the groove.
Nell told Newzroom Afrika that out of the 67 Cross Trainer stores throughout the country, several are struggling with landlord-related issues.
He also disclosed that, during the business rescue process, The Cross Trainer’s employees will be protected.
Some former employees said they were unaware of the company’s financial difficulties or upcoming layoffs, while others reported not receiving their final payments since losing their jobs in April.
A former employee shared with Newzroom Afrika, “People arrived at the shop and we were told the shop will close, then the next day we were told that we are being retrenched.”
Another former employee said to Newzroom Afrika, “We are not getting our money, and our boss never discussed with us that he would be paying our money bit by bit.” The same former employee added, “We take (took) him to the CCMA and the labour department, where he made promises that he would give us our money.”
Amidst all this, Nell assured that the business rescue practitioners will address the employees’ concerns and work to ensure the company survives to protect the current staff.
He also mentioned that the business rescue practitioners will provide an update on the labor issues and present a plan to save The Cross Trainer in a few weeks.
Source: Newzroom Afrika
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