JOHANNESBURG, Jan 31 (Reuters) - South African retailer Edcon needs 3 billion rand ($226 million) in financing over the next three years to allow it time to “fix” the business, its chief executive Grant Pattison said on Thursday.
Edcon has been grappling with an over-leveraged capital structure for several years, after troubles in its credit business in 2014 coincided with an economic slowdown and weak consumer spending at home.
The capital injection “gives us a runway of two to three years so management can focus on fixing the business and not raising cash,” Pattison told Reuters at a Johannesburg store.
Edcon has been in talks with lenders and other investors about injecting money into the business while asking landlords to reduce rents.
The company, which vies for market share with TFG , Truworths and international chains such as Zara and H&M, is one the biggest names in South African retail, employing more than 14,000 full-time staff in over 1,100 stores, according to its website. ($1 = 13.2516 rand) (Reporting by Nqobile Dludla; Editing by Susan Fenton and Alexandra Hudson)