The Edcon Business Rescue Practitioners today announce the signing of a “Heads of Agreement” to sell parts of Edgars to Retailability (Pty) Ltd. Retailability is a fashion retailer and the holding company of store brands including Legit, Beaver Canoe and Style, operating in over 460 stores across South Africa, Namibia, Botswana, Lesotho, and eSwatini. The transaction will be subject to various conditions precedent and regulatory approvals, including the Competition Authorities.

The transaction, if successfully concluded, will be a positive outcome for the business rescue process, as Edgars with its great brands, product offerings and retail footprint, will be well served in the hands of an experienced Retailability team. Through this transaction, Retailability plans to utilise Edgars’ unique value proposition, and large attractive target market, to ensure the growth and continuity of a proudly South African Edgar’s brand. The terms of the potential sale were presented to stakeholders at various business rescue Committee meetings.

The business rescue practitioners commented, “This significant step will not only save a significant number of jobs, but importantly, will lead to the sustainability of a proudly South African iconic brand, whose continuity would serve the greater economy. The details of the transaction will be finalised on the signing of definitive agreements and the fulfilment of the various conditions precedent.

The practitioners added that “the business rescue plan in respect of the other Edcon businesses/or parts thereof is in its advanced stages. As you would anticipate, the nature of such transactions are complex, and formal announcements will be made once we are able to do so.”

The closing of the Edgars transaction is targeted for this quarter. All stakeholders will be updated as the business rescue plan and the sales transactions progress.