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The restructuring and recapitalisation of Edcon, which includes Edgars, Jet and CNA, has passed its next hurdle, CEO Grant Pattison said in a statement on Friday.
He said the the retailer's board had approved the structure of a proposed recapitalisation plan. In response lenders have extended waivers to allow time for implementation.
"This will allow sufficient time for the number of necessary due diligence and governance processes to be completed. At this stage, we can't release any additional detail as we remain subject to confidentiality agreements," said Pattison.
"The board fully appreciates the support that is being received from all group stakeholders and the commitment that has been shown. We will make further announcements in due course."
Earlier this week Edcon confirmed to Fin24 that it is in discussions with stakeholders, including landlords and suppliers, regarding the group's continued recapitalisation programme.
This was after the Sunday Times reported that Edcon was "on the brink of collapse", putting thousands of jobs at risk.
"Edcon's balance sheet recovery programme has been underway for some time as we continue to focus on completing a recapitalisation of Edcon," Pattison told Fin24 on Sunday.
"Part of the process is the continuing discussions with various stakeholders, which include suppliers, lenders, landlords, potential new investors, and others, as we explore and discuss various options."
Edcon 'hasn't crashed'
Pattison emphasised that Edcon has not "crashed" and the group has actually seen good sales during the run-up to the festive season.
In April that Pattison said Edcon had been very centralised in the past and was trying to decentralise.
In a statement issued earlier this week, the SA Federation of Trade Unions urged Edcon to do all it can to ensure that workers' jobs are safe.
Fin24 reported on Thursday that Saftu marched to Parliament for better wages and working conditions for workers in SA in general.
The federation put its weight behind members of the Food and Allied Workers Union, and the National Union of Public Service and Allied Workers, in what they describe as their ongoing disputes with pharmacy giant Dis-Chem Pharmacies [JSE:DCP], Edcon and Premier Foods [JSE:PFF] as well as in the plastics sector.
A picket was also held outside one of Edgars' facilities, warning the company against retrenching staff as part of its recapitalisation plan.
According to an Edcon spokesperson, the group employs 21 000 permanent employees. It also employs temporary employees whose numbers fluctuate depending on the time of year.
