Edcon Limited was a retail company based in Johannesburg, South Africa. This article delves into the history of Edcon, its rise, challenges, and eventual acquisition by Retailability.
Johannesburg, South Africa
Early History and Acquisition by South African Breweries
In 1982, the company, still known as Edgars, was acquired by South African Breweries.
Private Equity Takeover and Subsequent Challenges
In 2007, Bain Capital concluded a private equity deal that delisted the group from the Johannesburg Stock Exchange. Following the delisting, the company experienced numerous challenges. Following the private equity takeover by Bain Capital, Edcon had a succession of CEOs, lost significant market share, and struggled with an oversupply of leased floorspace.
In 2016, the company recorded a net debt of R24.7 billion and was temporarily taken over by debtors to avoid financial collapse. This resulted in the closure of 253 stores by 2018 as part of a recovery plan, and by 2017 the company had reduced its level of net debt to R4.2 billion.
Read also: Property Practitioners Regulatory Authority
COVID-19 Impact and Business Rescue
Following the COVID-19 lockdown in South Africa in 2020, Edcon announced that they had filed for business rescue and that approximately 5000 jobs were on the line.
Edcon has announced it will be retrenching at least 22 000 employees
Acquisition by Retailability and The Foschini Group
On September 8, 2020, The Competition Tribunal approved the sale of Edgars to Durban Based, private fashion company Retailability, who owns three other brands, Legit, Style and Beaver Canoe. The Competition Tribunal also approved the sale of JET to The Foschini Group saving an additional undisclosed number of jobs in the process.
Key Acquisitions
- Edgars: Acquired by Retailability
- JET: Acquired by The Foschini Group
Retailability's Brands
- Legit
- Style
- Beaver Canoe
Edgars' Expansion and Store Features
Edgars is a South African chain of department stores, with locations throughout Southern Africa. The chain has around 200 stores across South Africa, Namibia, Zambia and Botswana as well as in the capital cities of eSwatini, Lesotho, and Ghana. In 2014 Edgars opened at a new 50,000 square meter shopping centre in Nairobi, Kenya. In 2018 Edgars introduced a new, larger 8,000 square meter store in Fourways Mall in Johannesburg, featuring trees, play areas, a coffee shop, “beauty rooms” where customers can get makeovers, and a section that allows customers to print their own text or images on clothing.
Sale Announcement and New Ownership
In June 2020 Edcon put the chain up for sale due to economic difficulties stemming from the COVID-19 pandemic. On July 7, 2020, it was announced that Edcon has signed an agreement to sell the chain to Durban-based Retailability, which operates 460 stores across Southern Africa and is the owner of brands Legit, which Edcon had sold to Retailability four years prior, Beaver Canoe, and Style.
Competitor Comparison
Here's a comparison of Retailability with some of its competitors:
Read also: Discover Thula Thula
| Company | Industry | Description |
|---|---|---|
| Ackermans | Fashion Retail | Offers clothing for women, men, kids, and babies, as well as homeware products and cellular deals. Provides financial products. |
| Superbalist | E-commerce | An online fashion business offering a range of fashion, beauty, and home products. |
| MyRunway | Online Retail | Offers clothing, accessories, and homeware products, catering to different styles and sizes. |
| Fendi | Luxury Fashion | Produces fur, ready-to-wear, leather goods, shoes, fragrances, eyewear, timepieces, and accessories for men, women, and kids. |
Read also: Traditional South African Bread
Popular articles:
tags: #Africa
