Edgars parent to close Boardmans, La Senza and other chains

Edcon Holdings’ latest recovery plan includes closing chains including Red Square cosmetics and La Senza lingerie and attempting to lure their customers to its flagship Edgars clothing stores.

09 July 2018 | Economics

“The quicker we can do this, the better.” Grant Pattison, CEO, Edcon Holdings

The move is the brainchild of new chief executive officer Grant Pattison, who replaced Bernie Brookes at the helm of South Africa’s biggest non-food retailer in February. The 89-year-old Johannesburg-based company has long struggled to stay afloat amid weak consumer spending and economic growth, and had to be taken over by banks and bondholders in 2016 to avoid collapse.

Under Pattison’s strategy, Edcon will reduce its more than 1 300-store footprint and cut floor space by 17% over five years to boost profitability, the CEO said on Wednesday. The retailer will focus its attention primarily on Edgars, which already sells most of the ranges available in the stores that will close. Edcon will also retain discount clothing specialist Jet and its CNA chain of stationery stores, though Boardmans homeware is set for the chop.

“I do think the company can turn,” Pattison said. “The quicker we can do this, the better.”

Suffocating debt

The urgency comes as Edcon’s retail sales fell 9.4% in the three months through December 23 and adjusted earnings before interest, taxes, depreciation and amortisation slumped 25%. The company’s owners include Franklin Templeton, Sanford C Bernstein & Co LLC and Harvard University Pension Fund, which took over Edcon when it was suffocating under foreign-currency debt used to finance its 2007 takeover by Boston-based Bain Capital Private Equity LP.

With more than 14 000 permanent staff, Edcon is a significant employer in a country where more than one in four people are out of work.

Net debt at the end of 2017 was R4.2 billion, compared with R24.7 billion the previous year. Earlier attempts at reviving Edcon included increasing the workforce, slashing prices and introducing international brands. The latter policy was reversed by Brookes, who led the company for a little over two years.

Edcon said in March it was in discussions with creditors about refinancing debt to strengthen the balance sheet. The company has a liquidity facility and credit facilities maturing at the end of September.

Pattison is a former CEO of Massmart Holdings, and is best known for selling a majority stake in the general goods retailer to Wal-Mart Stores in 2011.

-Fin24

Similar News

 

Calle urges parties to account

20 hours ago | Economics

NDAMA NAKASHOLEFinance minister Calle Schlettwein has urged each political party to remain accountable to the public in regard to the public funds it receives.The figures...

Dangote signs US$650mln Afreximbank loan

20 hours ago | Economics

Africa’s richest man, Aliko Dangote, has signed a US$650 million loan facility with the African Export-Import Bank (Afreximbank) for his oil refinery project in Nigeria.Africa’s...

CIF, NSI highlight criticality of adherence to standards

20 hours ago | Economics

STAFF REPORTERAn efficient use of scarce financial resources both in the public and private sector demands an awareness and application of building standards and adherence...

Ramaphosa talks tough on mine safety

20 hours ago | Economics

Safety is a huge issue in South Africa’s deep and dangerous mines and increasingly a focus for investors. A spate of deaths at Sibanye-Stillwater’s gold...

May calls on citizens to back her plan

1 day - 17 July 2018 | Economics

Prime Minister Theresa May defended her plan for leaving the European Union (EU) as the only viable option, and called on voters and lawmakers to...

Informal sector a big player

2 days ago - 16 July 2018 | Economics

NDAMA NAKASHOLELocal tax experts say the informal sector plays an important role in the economy and should be treated as such.Following the circulation of leaflets...

United Arab Emirates pledges­ US$10 billion in SA

2 days ago - 16 July 2018 | Economics

The United Arab Emirates (UAE) has pledged to invest US$10 billion in South Africa's economy, including the tourism and mining sectors, the South African presidency...

Price monster puts pedal to the metal

5 days ago - 13 July 2018 | Economics

The hike of 60c/l in the fuel price in June resulted in a spike in annual overall transport inflation and pushed up Namibia’s annual overall...

Finance to appoint revenue head by August

5 days ago - 13 July 2018 | Economics

NDAMA NAKASHOLE - The ministry of finance has kicked off the search for the commissioner of its new Namibia Revenue Agency (NAMRA).The ministry’s senior technical...

What is the purpose of livestock in Namibia?

5 days ago - 13 July 2018 | Economics

It is established fact, indeed dogma, that Namibian livestock are used to produce meat, as well as some milk, skins, eggs, draught power and manure....

Latest News

Calle urges parties to account

20 hours ago | Economics

NDAMA NAKASHOLEFinance minister Calle Schlettwein has urged each political party to remain accountable to the public in regard to the public funds it receives.The figures...

Rest easy, gentle giant

20 hours ago | Opinion

The late Theo-Ben Gurirab was without an iota of doubt a gentle giant, whose life was lived in service and dedication to Namibia's struggle for...

Dangote signs US$650mln Afreximbank loan

20 hours ago | Economics

Africa’s richest man, Aliko Dangote, has signed a US$650 million loan facility with the African Export-Import Bank (Afreximbank) for his oil refinery project in Nigeria.Africa’s...

New revenue agency operational by...

20 hours ago | Government

Finance minister Calle Schlettwein is optimistic that the much-anticipated Namibia Revenue Agency will be operational come 1 March 2019. This will coincide with the start...

Dippenaar blames Joschko for crash

20 hours ago | Justice

Jandré Dippenaar has placed the blame for a crash in which six people died squarely on the shoulders of Markus Walter Joschko, who was also...

CIF, NSI highlight criticality of...

20 hours ago | Economics

STAFF REPORTERAn efficient use of scarce financial resources both in the public and private sector demands an awareness and application of building standards and adherence...

Ramaphosa talks tough on mine...

20 hours ago | Economics

Safety is a huge issue in South Africa’s deep and dangerous mines and increasingly a focus for investors. A spate of deaths at Sibanye-Stillwater’s gold...

NAB appoints new CEO

20 hours ago | Agriculture

The Namibian Agronomic Board (NAB) has announced the appointment of Dr Fidelis Nyambe Mwazi as its newly appointed CEO. Mwazi takes over the reins from...

Seed bill could limit imports...

20 hours ago | Agriculture

The Seed and Seed Varieties Bill, expected to be adopted by the National Assembly, could limit the importing and exporting of seeds, finance minister Calle...

Load More