Edcon creditors go to court to halt restructuring meeting

Johannesburg – A group of creditors South Africa retailer Edcon has made a court application to halt meetings scheduled for Monday to consider a proposed restructuring plan for the company which is under bankruptcy protection.

Edcon, which owns department store chain Edgars and budget retailers Jet, entered a form of bankruptcy protection in April after its sales were hit after the coronavirus crisis lockdown.

Administrators in charge of the retail giant are proposing a sale of parts or all of the company and abut 15 parties have shown interest in the sale.

On the company’s website, the administrators said that the application to halt Monday’s meeting would put the Edcon sales process and jobs at risk. It said the sale needed to be finalised by end-June to allow time for supplier negotiations to be finished and for summer stock to be purchased.

In the application, the creditors said that Kingsgate and its associate companies were owed R24 million, Clematis about R18.5 million by Edcon.

Lance Schapiro, one of Edcon’s administrators, said the meetings should proceed as scheduled later on Monday.

The total amount owed to Edcon’s creditors is approximately R8.1million ($465.60million), the document published on the administrator’s website said.


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