Edcon business rescue on track, even as 17,000 job cuts start

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A plan to sell Jet and Edgars together did not garner sufficient interest and if one brand is sold, the other’s stores will be closed

Embattled retailer Edcon, which has issued retrenchment notices to its almost 17,300 employees, said on Wednesday that its business rescue process is going as planned.

The company owes about R6.7bn to creditors, with R3.1bn owed to unsecured creditors who will get nothing if the company is liquidated, according to the business rescue plan. However, should a sale go ahead, “for those parts of the business, affected employees would be transferred to the new owners”.

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