Edcon
| Company type | Private (after 2007) |
|---|---|
| Industry | Retail |
| Founded | September 6, 1929 in Johannesburg, South Africa |
| Founder | Sydney Press |
| Defunct | 2020 (business rescue and divestiture) |
| Fate | Entered business rescue; subsidiaries sold |
| Headquarters | Johannesburg , South Africa |
Area served | South Africa, Botswana, Lesotho, Eswatini, Namibia, Ghana, Zimbabwe, Zambia |
Key people | Grant Pattison (CEO from January 2018) |
| Products | Clothing, footwear, textiles, stationery, home goods |
Number of employees | Approx. 5,000 (jobs at risk in 2020 business rescue) |
| Parent | Bain Capital (from 2007 until business rescue) |
Edcon Limited was a retail enterprise based in Johannesburg, South Africa. Among its principal subsidiaries was Edgars, a department store network comprising 203 outlets. In 2020, the Competition Tribunal authorized the transfer of Edgars to Retailability (pty) Ltd, while Jet was acquired by The Foschini Group.
History
Edcon Ltd stood as South Africa's foremost retailer specializing in clothing, footwear, and textiles (CFT), managing various retail formats. The inaugural Edgars store launched on 6 September 1929 in Johannesburg, established by Sydney Press. The company went public on the Johannesburg Stock Exchange in 1949 and expanded into Botswana, Lesotho, and Eswatini between 1966 and 1969. By 2014, Edcon operated more than 1,400 outlets across South Africa, Botswana, Namibia, Eswatini, Lesotho, Ghana, Zimbabwe, and Zambia under ten distinct retail brands.
In 1982, South African Breweries acquired Edgars. The Red Square retail chain was introduced in 1996, followed by the acquisition of stationery retailer CNA in 2002 for R130 million. In 2004, Edcon purchased Boardmans, a houseware retailer, for R94 million.
Edcon Financial Services extended credit and financial products to upwards of four million cardholders. In November 2015, Edcon Limited was referred to the National Consumer Tribunal. By October 2017, the company had relaunched its thank U loyalty program to enhance customer engagement.
In 2007, private equity firm Bain Capital took Edcon private by delisting it from the Johannesburg Stock Exchange. After this transition, the company encountered substantial operational difficulties.
Amid the COVID-19 pandemic in early 2020 and consequent lockdowns that shuttered retail outlets across South Africa, Edcon suspended rent payments. This situation led the group into Business Rescue proceedings and resulted in the divestiture of several subsidiaries to other fashion retail conglomerates.
Financial trouble
Following Bain Capital's acquisition through private equity, Edcon underwent several changes in its CEO position, suffered considerable market share losses, and dealt with excessive leased retail space. These issues were compounded by increased competition from inexpensive imported garments and a consumer shift towards online shopping.
By 2016, Edcon's net debt had escalated to R24.7 billion, triggering creditor intervention to prevent insolvency. A restructuring initiative saw the closure of 253 stores by 2018 and reduced net debt to R4.2 billion by 2017. In July 2018, Edcon announced it would shut down Boardmans homeware and La Senza outlets.
Grant Pattison assumed the role of CEO in January 2018. By the end of that year, reports indicated that Edcon was approaching financial collapse and was negotiating rent concessions with shopping centre landlords. Although Edcon denied any imminent failure, it acknowledged ongoing efforts to reduce debt and avoid further store closures. The potential elimination of approximately 44,000 direct jobs and an estimated 100,000 indirect positions attracted criticism from labour unions.
After South Africa’s COVID-19 lockdown in 2020, Edcon entered business rescue proceedings with around 5,000 jobs at risk. On September 8, 2020, the Competition Tribunal approved Retailability—a Durban-based private fashion firm owning brands such as Legit, Style, and Beaver Canoe—to acquire Edgars. Meanwhile, The Foschini Group purchased JET, safeguarding additional employment opportunities; CNA Group was sold to a holding company based in Mauritius.
Divisions
| Brand | Sector | Revenue
(2015) in millions of Rands |
Operating Profit
(2018) in millions of Rands |
|---|---|---|---|
| Edgars | apparel | 13,929 | 1,305 |
| Edgars Zimbabwe | apparel | 799 | 101 |
| CNA | stationery and books | 2,011 | 35 |
| Discount/Jet | apparel | 10,771 | 1,220 |
| Red Square | apparel | - | - |
| Prato | apparel | CLOSED | CLOSED |
| Boardmans | home goods | CLOSED | CLOSED |
The company's retail activities are divided into two primary segments according to their target customer base:
- Department Stores Division (serving middle to upper income consumers):
- Edgars (operates across Botswana, Lesotho, Namibia, Swaziland, South Africa, and Zambia)
- CNA (present in South Africa, Lesotho, Botswana, Namibia)
- Boardmans (operating in Botswana, South Africa, Namibia) (ceased operations in 2018)
- Prato (South Africa) (no longer operational)
- Red Square
- Discount Division (targeting middle to lower income groups):
- Jet (active in Botswana, Lesotho, Namibia, South Africa, Swaziland, Zambia), which also includes Jet Mart and Jet Shoes
This company is listed on both the Johannesburg Securities Exchange and the Zimbabwe Stock Exchange, and forms part of the Zimbabwe Industrial Index.