STATIONER CNA which has fallen behind on payments to suppliers is set to follow its former owner Edcon after it emerged yesterday that it has officially been placed under business rescue.
Sources confirmed yesterday that Tashya Giyapersad and Simi Maharaj have been appointed as business rescue practitioners for the business which has been in existence for over 100 years.
The business rescue process is to help the group over the rough financial patch and possibly prevent strenuous legal action from its suppliers and landlords as it battles to keep its doors open.
The retailer has been hard-hit by the extended lockdown period due to the Covid-19 pandemic as shoppers were scarce at malls and stores where it has a presence
The Edcon division was sold to investment group Astoria last, which in turn recently on-sold it to the group's management team.
The group has changed hands numerous times in its existence, having been bought by Edcon for R130 million in 2002.
Edcon was itself bought by American investment firm Bain Capital in a debt-funded deal, and delisted from the JSE.
The company ended up in business rescue, and was dissolved last year, with all of its subsidiaries sold off.
CNA’s former owner Edcon was placed in business rescue in April last year, with all of its assets eventually sold off.
Analysts said the business rescue process was a last ditch effort to keep creditors at bay.
“It will at least give them a chance to try rectify things. It was always going to be difficult taking over the business during the Covid-19 pandemic,” he said.
BUSINESS REPORT