Edgars owner to sell stake to rival retailer

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Jul 2020
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Edgars owner to sell stake in clothing chain to rival retailer
Edgars owner to sell stake in clothing chain to rival retailer


Edcon Holdings Ltd. agreed to sell part of South African clothing chain Edgars to private equity-backed regional rival Retailability Pty Ltd. Following a five-week strict lockdown to contain the coronavirus in South Africa that wiped out sales and curtailed a recovery from a 2019 restructuring, Edcon was put into a local form of bankruptcy protection in late April. Edgars was put up for sale alongside sister chains Jet, which specializes in low-cost clothing, and Thank U, a finance and loyalty-card unit. A sale of Edgars and the preservation of at least some jobs comes as South Africa's retail sector and the wider economy reels from the Covid-19 pandemic and various forms of lockdown.