Retrenchments, closures planned for Ellerine
Fin24

Retrenchments, closures planned for Ellerine

2014-09-14 11:41

Cape Town - The Ellerines furniture group has started a process to retrench staff, reported Netwerk24.

It currently has more than 7 000 workers and more than 1 200 shops in South Africa.

The business rescue practitioners Leslie Matuson and Jayant Daji Pema, who was appointed by Ellerine, announced earlier this week that certain shops will be closed and certain parts of the business restructured.

READ: Ellerine applies for 'rescue'

This includes the warehouse and distribution operations and its head office.

The restructuring programme has been created in conjunction with the management of the business.

The business rescue practitioners did not want to reveal how many jobs would be cut or how many shops will be closed.

Staff members affected by the restructuring have received letters in terms of article 189 of the Labour Act.

Ellerines will also consult with the union Saccawu and the process is being facilitated by the  Commission for Reconciliation, Mediation and Arbitration (CCMA).

READ: How African Bank fail impacts Ellerine clients

Matuson and Pema also announced that they have started a process of selling either the whole business or parts thereof.

"The intended restructuring of the business depends on capital...Because the availability of capital is currently uncertain, the business rescue practitioners have started a parallel process of considering offers for the whole business or parts thereof in order to avoid liquidation."

READ: Fear of job losses among Ellerine suppliers

African Bank bought Ellerine Holdings in 2008. Ellerine Holdings owns the chain stores Ellerines, Beares, FunitureCity, Dial-a-Bed, Geen & Richards and Wetherlys.

Die Burger previously reported that there is great interest to acquire the chain stores.

The company has sustained losses of about R3bn since 2009. Ellerine's loss in the 2013 financial year alone was R1.1bn.

"If the business rescue is not successfull, Ellerines will probably be liquidated and that would lead to the loss of most, if not all the jobs," according to a statement by the business rescue practitioners.

ALSO READ: What went wrong ag Ellerine?

* Are you or someone you know affected by retrenchments or closures at Ellerine? Share your story.

* For business news in Afrikaans see Netwerk24.

Comments
  • Christopher Grant Rogers - 2014-09-14 12:56

    If ellerines goes belly up, will all of the chain stores affiliated also go belly up? I know stupid question but I'm just making sure I understand this situation.

      Konstabel Koekemoer - 2014-09-15 09:59

      Those chains that are still profitable will probably be sold off while those that are not will be liquidated or at least scaled down to try and make them viable.

  • bridgette.wood.18 - 2014-09-14 12:59

    If they liquidate all of the stores will close to offer creditors some relief. If they restructure some will remain open.

  • Jimmy James - 2014-09-14 12:59

    No brains, just keep on STRIKING. STRIKE THE JOBS AWAY!!!

  • Bento Maepa - 2014-09-14 14:13

    Really sad for all those who are affected.

      Hlubi KaLilanga AkaPhefumlela - 2014-09-22 22:03

      Jah,eish its bad but I believe that it's a chance for us to seek some greener pastures.To us,the ehl employees it has had a big negative impact.We're still patiently awaiting that day of retrenchment as the restructuring process has just started in some branches

  • Debrah Ellen - 2014-09-14 14:41

    ya ne its to bad 4 ellerine workers.lets hope another plan wll come 4 u guys.we need to pray cause retrenchment its not a good thing,especially wen u used of working eish mphe mphe ya lapesa hlee

  • Simone Louw - 2014-09-14 21:37

    No my friends you got it all wrong, STRIKE yes STRIKE work a little less for a little more money everyday. This is the only country where you can strike yourself into prosperety.So unfortunate that the real losers are the workers here.

      Konstabel Koekemoer - 2014-09-15 10:05

      Not sure if this can be directly blamed on the strikes although they would have helped expedite the demise of ABil and Ellerines. The real problem is selling too on credit to people who cannot afford the installments. The one good thing that will come out of this whole mess is that banks and retailers may become a bit more cautious about lending money to low income earners.

  • Nin Ja Kitty - 2014-09-15 08:19

    This is the sign of the times. My thoughts with those who will be affected by this. It should be remembered that it is not just the employees that suffer, but their entire families. It is a sad state of affairs.

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