Johannesburg – The Foschini Group (TFG) is looking to raise up to R3.95 billion through a rights to offer and has notified employees it was in the process of laying off some staff to cut its debt as the retailer faces headwinds in its core markets.
The group said it had chosen the rights to offer in order to reduce indebtedness, saying it had invited employees to apply for voluntary severance packages as part of a cost-cutting exercise to mitigate the impact of the economic fallout from the Covid-19.
TFG said yesterday that the voluntary retrenchment process would ascertain the number of employees who would be affected.
Group human resource director Senta Morley said the company had initiated many cost-containment initiatives to cut expenses to the Covid-19 pandemic.
“From February, we froze vacancies, and we continue to aggressively manage all costs in the business,” said Morley.
“We have started a voluntary retrenchment process where we have invited employees to apply for voluntary separation,” Morley added.
Morley said the retrenchment followed last years’ launch of a business programme focused on optimising many functions in the business and reducing head office costs.