South Africa: Edcon to sell parts of business to PE-backed rival
The business rescue practitioners of embattled South African retailer Edcon today announced plans to sell parts of its Edgars division to fashion retailer Retailability, which is backed by private equity firm Metier.
Retailability is a fashion retailer and the holding company of store brands including Legit, Beaver Canoe and Style, operating in over 460 outlets across South Africa, Namibia, Botswana, Lesotho and eSwatini. The transaction will be subject to various conditions precedent and regulatory approvals, including the competition authorities.
The business rescue practitioners commented, “This significant step will not only save a significant number of jobs, but importantly, will lead to the sustainability of a proudly South African iconic brand, whose continuity would serve the greater economy. The details of the transaction will be finalised on the signing of definitive agreements and the fulfilment of the various conditions precedent.”
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