Edcon on brink of collapse: report

[BusinessTech]

Edcon on brink of collapse: report

This would make it 'by far the biggest single job loss ever' in South Africa, said economist Mike Schussler.

 

[genetic]

How did they get into this position?

 

[rietrot]

How did they get into this position?

All the clothing retailers have been struggling for the last couple of years. Edgers stands out to me as one that's ridiculously over priced and they have massive stores and cost.

Then also this headline is probably very sensational.

 

[Venomous]

I seem to recall that Absa bought their store accounts/debtbook(think back to when they started charging extra things to peoples cards, there were many threads here) a few years ago. I don't think they actually recovered as a business. I believe they were see-sawing on the brink of an abyss, and the absa injection only offered them a small lifeline.

A lifeline that is now fraying

 

[Lew Skannen]

This is a direct result of the economy being in a decline for prolonged period of time. Each and every big business in this country will eventually being meeting this fate, and this will be rather sooner than later. There will be no exceptions.

 

[genetic]

This is a direct result of the economy being in a decline for prolonged period of time. Each and every big business in this country will eventually being meeting this fate, and this will be rather sooner than later. There will be no exceptions.

You with your doomsday proffecies again

 

[Craig_]

This is a direct result of the economy being in a decline for prolonged period of time. Each and every big business in this country will eventually being meeting this fate, and this will be rather sooner than later. There will be no exceptions.

Has your Visser account been blocked?

 

[supersunbird]

This is a direct result of the economy being in a decline for prolonged period of time. Each and every big business in this country will eventually being meeting this fate, and this will be rather sooner than later. There will be no exceptions.

It doesn't help that so few people go to their stores and buy from them, Woolies seems much busier.

 

[WaxLyrical]

Edgar's sells China Mall products at Stuttatord prices on credit to patrons who are in debt.

 

[Lew Skannen]

It doesn't help that so few people go to their stores and buy from them, Woolies seems much busier.

I agree with you. They have a few things that does not work for them, one of them being their business model. Their business model would work perfectly in a wealthy economy where people have access to funds to finance a luxury clothing closet. This is not possible in South Africa and Edgars were warned before to change their business model, which it refused. Their debt book is enormous and this is simply debt that they will not recover under the current economical climate.

By the way, Woolies are under pressure too. Will be interesting to see if and how they intend to adapt to changing circumstances.

 

[rietrot]

Edcon Limited is a retail company based in Johannesburg, South Africa. Its subsidiaries include Edgars, a department store with 37 branches.[1][2]

Edcon Limited

Type

PrivateTraded asZSE: EDGR

They're listed on the Zim stock exchange. I never knew that. I wanted to go and check the results to see what's the real issue and was surprised when I couldn't find them on the JSE

 

[ArtyLoop]

In spite of tough conditions, other retailers are still going.
Edcon, their whole incompetent management, crap product, and large debtors book (these people LOVED to offer people accounts, which the accountholders simply didn't repay) are why they are in this position today

 

[Polymathic]

It doesn't help that so few people go to their stores and buy from them, Woolies seems much busier.

Been there a couple times during the last couple of months, the atmosphere reminds me of Stuttafords a year before they shutdown

 

[LazyLion]

Their very average clothing was horrendously over-priced.
They should fire their economists.
They had no clue what kind of prices their market could support.
But it didn't matter to them because they opened an account (or in some cases - several accounts) for every citizen in SA no matter their income or how many times they had already been garnished.

You can't run a business like that, it is not a charity.

 

[RoboJedi]

Ask a woolies sales person for help and compare that to asking a Edgar’s sales person ( if you can find one) ...

Same for stock, i wear a 32 size, extra length as im 186. Edgars never have stock. Every woolies i go into had stock.

Then there is who ever are the buyer at edcon, stuff there is ugly!

Lastly, thinks the woolies model of foods section works well. Go in grab a shirt or shorts or what ever and quickly do the weeks bread and milk run.

My last time in a edgars was about 3 months ago, when i asked a slouched sales person behind a counter for a specific item he loudly sighed, rolled eyes and said “ no stock “ without even checking.

 

[Kosmik]

No sympathy, had a run in years ago with stupid beurocracy, killed all credit with them and good riddance. Treat your customers like crap, that's what happens.