Two well-known South African companies, Ellies and West Pack, are in business rescue and face an uncertain future.
Pick n Pay’s latest financial results revealed that it swung from a R1.17 billion profit to a R3.2 billion net loss over the last year. MultiChoice suffered a 9% decline in active subscribers, mainly due to a 13% decline in the Rest of Africa business and a 5% decline in South Africa. While their pain is partly caused by the South African business environment, most of their problems are self-inflicted.Ellies liquidation
However, the company misjudged the market. It bet big on digital TV migration and pumped money into satellite dishes and related equipment. Ellies Electronics has clarified that it will continue to trade despite the liquidation of its parent company, Ellies Holdings. “The fact that Ellies Electronics continues to trade is an important factor for all stakeholders to note,” he said.West Pack in business rescue
The company cited several reasons for its financial distress. Notably, it cited its rapid growth, which led to cash flow problems.