Newsletter No. 11 29 March 2019
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Edcon Concludes Recapitalisation Deal
Following various announcements made by Edcon over recent months in relation to the recapitalisation of the business, the Group has advanced the process sufficiently to provide a further update to all stakeholders.
The Board of Edcon is pleased to announce that binding agreements have been concluded amongst, Edcon Limited’s existing secured lenders, the Public Investment Corporation (the “PIC”) on behalf of its client the Unemployment Insurance Fund (the “UIF”) and participating landlords which will result in the implementation of a recapitalisation programme. This programme includes the contribution of new cash commitments and rent reductions totalling approximately R2.7 billion into the Group.
The recapitalisation will result in the removal of all of Edcon’s interest-bearing debt and introduces a new group structure and set of shareholders. Subject to certain conditions, existing holders of the Notes may be entitled to nominally participate in the new shareholding structure.
Edcon CEO Grant Pattison commented: “I am extremely pleased and encouraged by the very broad support received, which has been a show of unity and partnership among our diverse stakeholder group. Edcon’s existing lenders; ministries of Economic Development, Labour and Finance; labour bunions Sactwu, Cosatu, Saccawu; the PIC and the UIF; as well as participating landlords, have all worked together to ensure a viable future for Edcon.”
Once all conditions precedent, which include normal regulatory approvals required for a transaction of this nature, have been finalised and the transaction is complete, the resulting shareholders of Edcon will mostly include:
Pattison added: “Numerous other strategic initiatives are underway to restore the customer proposition of Edgars, Jet and CNA. There was encouraging progress over the festive and back- toschool trading periods. We are also advancing our Thank U credit, insurance and loyalty offerings.
Reassuringly, our credit sales growth has exceeded our cash sales growth for the past several months, and the number of active accounts has increased for the first time since 2012.”
Pattison concluded: “This is a significant step forward towards ensuring the restoration of our balance sheet and putting the company back on the path to success. It will provide management with a sufficient time-frame to implement the store estate restructure and focus on returning the business to profitability. This will be done through placing our customers at the centre of our existence through our Edgars, Jet, CNA and Thank U operating divisions.”
Edcon Chairman Gareth Penny commented: “We are extremely pleased that various stakeholders have come together to reach this key step in sustainably repositioning the Edcon Group for the future. Edcon’s businesses are key players in the South African retail market and this is an important turning point for a company focused on delivering growth and creating value for all its stakeholders going forward.” Afican Retail
TFG’S Prestige Clothing celebrates 30 years
Employees at the factory celebrating with performances by local entertainers Emo Adams, Siv Ngesi and Carl Weber
As the conversation about local manufacturing gains momentum, global fashion and lifestyle retailer TFG highlighted their commitment to investing in South Africa by celebrating 30 years of world-class local manufacturing this year.
Its wholly-owned factory, Prestige Clothing located in Maitland, Cape Town and its newer, sister factory in Caledon are SEDEX approved and globally recognised for their advanced manufacturing processes, equipment and facilities. In 2018, the factories produced 6.5 million garments for nine TFG brands including Foschini, Exact, Markham, The FIX and Sportscene. The goal for 2019 is to reach the 9 million mark
As the Maitland factory reaches it 30-year mark, the Group has highlighted its impact on local communities:
– Over 1 000 local jobs generated.
– 146 learnership opportunities provided.
– 164 unemployed learners trained.
– Local economic development through increasing local fabric conversion and supply. Currently 50% of fabric is locally sourced.
– R10 million invested in non-owned, local supply chain.
– R12 million invested in premises for Prestige Clothing in Maitland.
Graham Choice, Head of TFG Design and Manufacturing, says that South Africa has the ability to design and manufacture quality goods and which in turn stimulates the economy and creates much needed jobs.
“We’re a global company with our roots firmly in SA and we believe in our people’s ability to produce products that can compete globally. Prestige Maitland is evidence of this and we plan to continue growing and positively impacting communities for another 30 years.”
TFG is a member of Proudly SA
MUF10, Danish Streetwear
Born in the ghetto and celebrated on the catwalk, the MUF10 brand presents its streetwear in a sophisticated style, dynamically winning over fashionistas worldwide.
From Social Housing to Chic Neighbourhoods
Dressing fashionistas from Copenhagen’s chic districts like the cool kids from the outskirts of the city? This is the wild gamble undertaken by Reza Etamadi, the Danish designer of Iranian descent and founder of the highly coveted label MUF10.
Drawing on his multiculturalism and modest background, since 2014 the designer has been putting together an unmistakably young and urban unisex wardrobe made up of ostentatiously cool jackets with printed logos, indisputably desirable hooded sweatshirts, and trousers with inspiring graphic motifs. Its bestsellers? The FAMILIE F / R PARA blouson jacket and the XXL hoodie marked with the brand’s logo, both pieces having been spotted on many occasions in streetstyle looks around fashion shows.
A Socially Aware Brand
More than just another streetwear brand, MUF10 stands out with its progressive and socially conscious approach to fashion. Community, loyalty and self-confidence are all values that the brand champions in the name of a certain sense of social cohesion.
At one of its 2018 shows, Etamadi expressed his disagreement with the Danish law banning the burka, stating that no one should judge a woman’s clothing. Certain models walked the catwalk in a hijab, while others wore T-shirts with slogans written in Arabic. This noteworthy performance earned him the opportunity to join forces with international retailers such as Antonia in Milan and Macao, Harvey Nichols in Shanghai and Birger Christensen in Copenhagen. Promostyl
Did you know……..
The tuxedo gets its name from the town named Tuxedo, situated in Orange County. This was the place where a tuxedo was first worn.
There is an Old Icelandic tale which claims the Yule Cat will eat you if you aren’t lucky enough to receive new clothes on Christmas Day.
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