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Competition authorities OK Edcon loan book sale

The Competition Commission has approved Nimble Fund 1’s intention to acquire Edcon Book Debts. Photo: John Woodroof/African News Agency (ANA) Archives

The Competition Commission has approved Nimble Fund 1’s intention to acquire Edcon Book Debts. Photo: John Woodroof/African News Agency (ANA) Archives

Published Dec 10, 2020

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CAPE TOWN - The Competition Commission has approved Nimble Fund 1’s intention to acquire Edcon Book Debts, the commission said in a statement yesterday.

The Nimble Group provides solutions to the credit industry in the consumer and corporate markets, focussing its operations in the non-performing loan segment of the market.

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It’s four primary functional areas are contingent debt collections, outsourcing in respect of the receivables function; debt purchasing, and fund management.

Edcon Book Debts is owned by Edcon Limited. Edcon Book Debts comprise the following categories of loan books: the Non-Performing Book, Written-Off Book, and the Current Foreign Portfolio.

The Commission found that the proposed transaction was unlikely to result in a substantial prevention or lessening of competition in any relevant markets and that the transaction would not raise any public interest concerns.

The massively indebted Edcon, once South Africa’s largest fashion retailer and previous owner of Edgars and Jet stores, was placed into business rescue in April. The group, already struggling before the Covid-19 pandemic, did not survive the national lockdown during which clothing retail was forbidden for several weeks.

Buyt the end of April after it had incurred R2 billion in Covid-induced sales losses and owed suppliers, landlords and other creditors about R6.7bn.

Jet Stores was subsequently sold to The Foschini Group and Retailability acquired about 120 Edgars stores together with the businesses conducted there in.

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Nimble Group started in Cape Town Town in 2009 and has expanded operations also into Namibia, Botswana and Kenya.

The sale includes the transfer of approximately 120 stores in South Africa together with the businesses conducted therein.

BUSINESS REPORT

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