Edcon Holdings agreed to sell part of South African clothing chain Edgars to a private-equity backed regional rival, safeguarding a 91-year-old brand and potentially saving thousands of jobs.<\/p>\n
Administrators led by Lance Schapiro and Piers Marsden struck a deal with Retailability Pty Ltd, a holding company for brands Legit, Beaver Canoe and Style, that owns 460 stores across southern Africa.<\/p>\n
Details of the transaction will be finalized based on the signing of further agreements, the business-rescue team said in a statement on Tuesday.<\/p>\n
Edcon was put into a local form of bankruptcy protection in late April, after a five-week strict lockdown to contain the coronavirus in South Africa wiped out sales and curtailed a recovery from a 2019 restructuring.<\/p>\n
Edgars was put up for sale alongside sister chains Jet, which specializes in low-cost clothing, and Thank U, a finance and loyalty-card unit.<\/p>\n
Rescue plans for the other parts of Edcon are at an advanced stage, the administrators said. The company as a whole employs almost 18,000 permanent workers and hires about 5,000 more on a seasonal basis.<\/p>\n
Retailability, based in Durban, has backers including Johannesburg-based Metier Private Equity. The company bought the fashion chain Legit from Edcon four years ago.<\/p>\n