Edgars could be saved by R1.2-billion PIC bailout

According to a report in The Sunday Times, the Public Investment Corporation is considering investing R1.2 billion in struggling retailer Edcon, which owns Edgars.

Edgars is at risk of going under and closing many stores, and asked shopping mall landlords for help and for reduced rentals in a bid to save the company.

The retailer faces liquidation, the closure of 1,300 stores, and the cutting of thousands of jobs if it is not successful in turning around its financial situation.

In an effort to aid the floundering retailer, the PIC is reportedly negotiating with Edcon regsarding a potential R1.2-billion bailout.

This cash injection could stave off a potential 140,000 job losses and help the retailer to recover its operations.

Edcon is reportedly also seeking R700 million from its lenders to stay afloat.

The company first hit hard times after Bain delisted it from the JSE in 2007 – taking a R25-billion hit to take it private.

Now read: Edgars could close 1,300 stores and cut 40,000 jobs

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Edgars could be saved by R1.2-billion PIC bailout