Struggling clothing retailer Edcon has reached a refinancing deal with its banks, landlords and the Public Investment Corporation (PIC) on Friday.
Edcon owns Edgars, Jet and CNA.
It is Edcon’s second refinancing deal in two years.
The R2.7 billion deal will free it of all interest-bearing debt by turning its banks, landlords and the PIC into shareholders.
Edcon employs 40 000 people.
Its CEO, Grant Pattison, says he can now focus on fixing the business and implementing its survival plan which may include closing a third of its stores in the next two years and moving away from selling branded imported clothes.