On Friday the Foschini Group (TFG) submitted an offer of R480 million to Edcon’s business rescue practitioners (BRPs) to purchase a minimum of 391 of their Jet stores and assets.
Toward the end of April, Edcon, who owns Edgars and Jet stores, announced that they have filed for voluntary business rescue after the national lockdown had caused a loss of sales in the industry. However, in June, Edcon’s BRPs advised that the only way to save the company and the jobs of many employees was to initiate an “accelerated sale” to interested parties.
TFG who has been growing its manufacturing capacity confirmed that the proposed deal will include Jet’s distribution centre located in Durban and certain stores in Botswana, Lesotho, Namibia and Eswatini.
On Monday morning TFG issued a statement saying, “Edcon’s business rescue practitioners have accepted the terms of TFG’s conditional offer. TFG has been granted exclusivity to negotiate and finalise the terms and conclude the Proposed Transaction,”.
The retailer says this is a unique opportunity which previously was not possible and is expected to give TFG significant scale at an attractive price.