Will Cross Trainer parent company be liquidated?

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The large portion of their R80 million offer will be used to negotiate with the landlords and restock the stores.

Business Rescue Practitioners have filed for liquidation of Cross Trainer’s parent company, while there is an R80 million offer on the table. Picture: Menlyn Park Mall website.

Before taking the decision to file for liquidation at the High Court in Pretoria last week, the practitioners said they engaged with a number of financial institutions to secure funding for critical operational expenses such as rent obligations, and employee salaries, amongst others. “The actions by landlords to as the company to vacate the space with a sense of urgency underscores the deteriorating financial position of the company, as it can no longer meet it lease obligations.”

The owner of Frame Leisure Trading, Mark Frame has attributed the impact of Covid-19 pandemic, and the 2021 mass looting as the beginning of the company’s financial destress.

 

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