Cell C plans to get rid of nearly all its retail outlets

Daniel Puchert

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Cell C selling its stores

Cell C has informed staff of its plans to franchise 44 of the 47 retail outlets it owns as mobile operators face intense competition in the market.

It was originally reported that the decision could impact at least 400 staff. However, Cell C has denied this. Instead, it hopes to create more job opportunities.
 
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WFH is much better, less traffic in the mornings
 
Poor employees, having a one year noose around your neck. I guess it is better than losing your job outright when a new owner takes over. I suppose one can prepare or look for another job in the meantime.
 
Wonder if they will be celebrating with a bottle of Blue Label Johnnie Walker?
 
Still interesting what is going to happen forward
 
I have to disagree with MyBB's characterization of Cell C as "hopelessly insolvent".

If that is true, the directors have a duty to file for business rescue.
 
I have to disagree with MyBB's characterization of Cell C as "hopelessly insolvent".

If that is true, the directors have a duty to file for business rescue.
I don't know what the criteria are for business rescue, but I'll just leave the information that comment is based on here...

"Cell C’s balance sheet for its full year 2022 shows that it has assets of R5.798 billion and liabilities of R15.092 billion. It translates into negative equity of R9.294 billion."

I know the Guptas have desensitized South Africans to how much money a billion rand is, but that's a lot of negative equity.
 
I have to disagree with MyBB's characterization of Cell C as "hopelessly insolvent".

If that is true, the directors have a duty to file for business rescue.
Well technically the onus rests on creditors to file if they think they are at risk. Till now they've paid their debt and investors have been footing the bill so they aren't really at risk.
 
Well technically the onus rests on creditors to file if they think they are at risk. Till now they've paid their debt and investors have been footing the bill so they aren't really at risk.
Creditors often do not see the balance sheet. Then they don't know when to apply for liquidation or business rescue.
 
Creditors often do not see the balance sheet. Then they don't know when to apply for liquidation or business rescue.
That is true but any creditor that isn't paid on time can apply and it's up to the business to show it's solvent. While capital is being pumped in it's not technically insolvent, just running at a loss so the directors are behaving as they should.
 
I don't know what the criteria are for business rescue, but I'll just leave the information that comment is based on here...

"Cell C’s balance sheet for its full year 2022 shows that it has assets of R5.798 billion and liabilities of R15.092 billion. It translates into negative equity of R9.294 billion."

I know the Guptas have desensitized South Africans to how much money a billion rand is, but that's a lot of negative equity.
So they're done burning the furniture now they're burning the grass and veld around the building too..
 
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