The Foschini Group (TFG) has announced it is in the process of acquiring certain Jet assets.
TFG reported on Monday it had submitted a conditional offer to acquire a minimum of 371 commercially viable Jet stores from Edcon for R480 million.
The company said the proposed transaction included the transfer of selected key executives and staff of Jet to ensure sufficient management capacity and continuity to deliver on the current turnaround plan for Jet, and discussions are well advanced in terms of a proposed transition plan.
Edcon, the 90-year-old fashion and beauty retailer filed for voluntary business rescue and is in the process of selling its Jet, Edgars and rewards programme Thank U.
TFG said Edcon’s business rescue practitioners had accepted the terms of TFG’s conditional offer. “TFG has been granted exclusivity to negotiate and finalise the terms and conclude the proposed transaction,” TFG said.
Jet is a leading Southern African retailer by brand recognition and market share and would provide the group with a strategically important expansion into the value segment of the Southern African retail apparel market.
“The proposed transaction enables TFG to acquire selected parts of the Jet business, a unique opportunity which previously was not possible and is expected to give TFG significant scale at an attractive price,” said TFG.
TFG, which released a trading statement, said today that its consolidated retail turnover had declined 43 percent for the three months ended June, 27, 2020,compared to the same period in 2019, given the significant trading disruptions caused by government-enforced lockdowns and regulations on social distancing in all three of its major operating territories – South Africa, the UK and Australia.
“The global economic environment remains constrained and consumers continue to experience significant economic pressure,” TFG said.