Edcon Holdings is making progress toward securing R3-billion in funding need to keep the South African clothing retailer afloat for another three years, according to Business Day.
The Public Investment Corporation (PIC), Africa’s biggest money manager, may provide R1.8-billion to assist the company. In addition, landlords may contribute another R700-million in reduced rent, and Edcon’s banks about R500m, they said.
Meanwhile, according to an article by MoneyWeb, Edcon aims to take the following steps in a bid to downsize:
- Reduce the size of its Edgars store in the Johannesburg CBD by a third
- Close down its big Melrose Arch store
- Reduce its footprint at shopping centres across the country
- Reduce regional footprints in centres such as Mall of Africa, Eastgate and Gateway
- Continue with closing smaller stores across the country (115 have been closed to date)
- Downsizing several stores
- Continue to reduce retail space – in 18 months, Edcon has already downsized by 7%
- Reduce space nationally by 5% – 7% per year over the next few years
Edcon is one of the country’s biggest employers. It has 1 200 stores which employ approximately 30 000 permanent and casual workers.
Over 100 000 jobs are supported by the company when clothing suppliers and other service providers are included.