The sports retailer has faced cash-flow problems stemming from the Covid-19 pandemic and has struggled to keep up with its operational costs., George Nell from Corporate Business Rescue, Cross Trainer’s business rescue practitioner, said that there are 67 Cross Trainer stores in the country, with many having issues with their landlords.
“Sometimes the situation is that the procedures just follow one another so quickly that they cannot follow the legitimate procedures, but we will go back and see what uh what happened, and we will rectify what the company did wrong,” said Nell.Several other companies in South Africa, including AutoZone, West Pack Lifestyle, and Hohm Energy, have also been placed under business rescue over the last several months.
One of its business rescue initiatives involves exploring offers to acquire some of West Pack’s assets or the whole business. It also plans to sell non-core assets to improve its financial position.The company entered business rescue amid cash flow challenges and the inability to service existing debts.
The business rescue practitioners of former JSE-darling Ellies recently said that the group faced no reasonable chance of being rescued.