Edcon to file for voluntary business rescue amid virus pandemic

The struggling retailer - whose brands include Edgars and Jet - says its board has authorised the move - which will take place over the next few days.

Edcon says it's lost R2 billion in sales since mid-March when the first cases of COVID-19 were confirmed in South Africa and the subsequent lockdown.

It says the R2.7 billion it was provided with for its restructuring has been mostly used up to fund the 2019 and 2020 financial year ends.

Edcon says it's unable to pay creditors - while it will need help from the UIF COVID-19 relief scheme to pay April salaries.

“We will be working closely with the appointed Business Rescue Practitioners, shareholders and government to find a way to plug the financial hole. It is my hope that some version of the business will emerge to continue to serve customers," CEO Grant Pattison said. 

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