JOHANNESBURG - THE Competition Tribunal has approved the sale of parts of Edgars to Durban's Retailability subject to certain employment-related conditions, Edcon said in a statement yesterday.
Edcon South Africa’s biggest retailer which filed for voluntary business rescue in April, last month signed a sale and purchase agreement with Retailability for the sale of parts of Edgars.
The group said yesterday that the approval by the Competition Tribunal confirmed the successful progress of the business rescue plan, which includes the sale of up to 131 Edgars stores and the saving of approximately 5 200 jobs in the Edgars Business.
"The parties will now work on closing various conditions precedents and on finalizing the transaction for the rest of Africa, "said the group.
The sale is a positive step forward in meeting the objectives of the Edcon business rescue plan.
Retailability, a fashion retailer and a holding company of store brands including Legit, Beaver Canoe, and Style, operates in over 460 stores across South Africa, Namibia, Botswana, Lesotho, and eSwatini.
"Through this sale, Retailability plans to utilize Edgars' unique value proposition and large attractive target market, to ensure the growth and continuity of a proudly South African Edgars brand," said Edcon.
Last month The Foschini Group said that it had concluded an agreement to buy select assets of budget clothes retailer Jet from the administrators of Edcon.
BUSINESS REPORT ONLINE