Ellies gets a lifeline in South Africa

SMD Technologies has announced that it has acquired the Ellies electrical brand in South Africa following the liquidation of the group.

SMD, which was founded in 2005, currently carries various electronics brands, including Volkano and Rocka, and serves as an official distributor of other global brands like Logitech.

It has now added Ellies to its stable.

In January 2024, Ellies announced it was going into voluntary business rescue proceedings in terms of 129(1) of the Companies Act.

This came after the group’s bankers said that they would not fund the proposed transaction where the company would acquire Magetz Electrical Proprietary Limited and Power on Wheels Proprietary Limited (collectively, Bundu Power).

In April, business rescue practitioner John Evans said there was no reasonable prospect of rescuing Ellies Holdings and that the company would be liquidated.

Despite the group being liquidated, the subsidiary, Ellies Electronics, continued trading, and CEO Shaun Prithivirajh said that plans were underway to sell Ellies’ retail import and distribution business to keep the brand alive.

According to Avi Mishan, Managing Director and co-founder of SMD Technologies, the acquisition of the Ellies electrical brand into the group’s portfolio will ensure that Ellies products and services can continue in South Africa.

It also feeds into the group’s wider ambitions of scaling up and expanding in the country.

“The sale of the Ellies electrical brand will ensure that the trusted brand remains available to its loyal customers. The acquisition by SMD Technologies is set to revitalize the brand, leveraging SMD’s innovative approach and robust distribution network,” it said.

“This acquisition underscores SMD Technologies’ commitment to expanding its footprint and enhancing its product offerings. By integrating the Ellies electrical brand into its portfolio, SMD Technologies aims to uphold the legacy of the Ellies brand while introducing new innovations that meet the evolving needs of consumers.”

Read: It’s over for Ellies