� Business Monitor International Ltd Page - capital structure for several years, after troubles in its credit business in ---- coincided with an economic slowdown and weak consumer spending in South Africa. Edcon reached a tipping point in March and had to choose between seeking protection from creditors and not paying debt holders. ...Edcon reached a tipping point in March and had to choose between seeking protection from creditors and not paying debt holders. Edcon had considered selling assets to shore up finances, but had attracted only firesale offers, according to senior officials at the company. At the same time, Edcon also announced that it will be selingl its Legit clothing chain to private equity group Metier for ZAR---mn. ...The financial details of the transaction have not been disclosed, and the deal is expected to close by the end of the year. At the same time the company has received shareholder approval to proceed with its cash offer for UK discount retailer Poundland Group.
...South Africa will experience slow economic growth over the coming years due to weak consumer demand, lacklustre investment, relatively subdued commodity prices and sporadic strikes and power cuts. Business confidence in the country s economy remains relatively low and this is likely deterring a number of potential entrants into the retail market. ...Business confidence in the country s economy remains relatively low and this is likely deterring a number of potential entrants into the retail market. South Africans possess high household debt, meaning that the majority of the consumers finance many of their purchases through credit, making them largely exposed to interest rate fluctuations. The potential entry of global foreign retailers may out-compete local retailers who are not as modernised or sophisticated by international standards. ...South Africans possess high household debt, meaning that the majority of the consumers finance many of their purchases through credit, making them largely exposed to interest rate fluctuations. The potential entry of global foreign retailers may out-compete local retailers who are not as modernised or sophisticated by international standards.
...South Africa s growing middle-class population increases the potential for significant household spending on non-food items such as clothing and consumer electronics. The country has a highly urbanised population and this will help support growth in income levels. ...
