Edcon closes more brands, including Red Square

By closing the other channels, they hope to attract more customers to their flagship stores Edgars

The decision to close some channels comes from the new CEO, Grant Pattison, who took over from Bernie Brookes. Edcon is the largest non-food retailer in South Africa.

The Johannesburg company is struggling to stay afloat despite weak consumer spending and economic growth. In 2016, the company had to be bought out by banks and banks to prevent its collapse.

According to Pattison's plan, Edgars will reduce its footprint by more than 1,300 stores and reduce its floor space by 17% over the next five years to increase profitability.

They will also focus on Edgars primarily who sells most items that are available in stores that are closed.

Other stores that made the cut include CNA and Jet, however, Boardmans

Pattison says that he thinks the company can turn. He said, "The sooner we can do this, the better."

Debt

The urgency of making changes comes after retail sales Edcon fell 9.4% in three months while pre-tax adjusted earnings, depreciation and amortization taxes down 25%.

The owners of Edcon Holdings are Frank Templeton Sanford C. Bernstein & Co. LLC and Harvard University Pension Fund. They took over when Edcon was struggling with foreign currency debt that had been used to finance the acquisition by Bain Capital Private Equity LP in 2007.

The 89-year-old company also employs 14,000 employees permanent in a country where more than one in four people are unemployed.

During the past year, the company's net debt amounted to R 4.2 billion. Other attempts to revive the company include the increase in the workforce, lower prices and the introduction of international brands.

Edcon said earlier this year that he was in talks with creditors to refinance his debt. Edcon also has credit facilities and credit facilities that will mature in late 2018.

– ONLINE ACTIVITY REPORT