Just more than a year after Edcon was handed a R2.7bn bailout, labour federation Cosatu reckons saving the clothing retailer is worth another shot.

A Business Day report notes Edcon is once again fighting for survival after failing to pay suppliers in March, citing the 21-day lockdown that has put its long-term viability as one of the biggest employers in SA in doubt.

Cosatu, which was instrumental in the previous bailout – for which the PIC chipped in with nearly half of the required cash injection at the end of 2018 – wants the PIC to use its big shareholdings in shopping mall owners to help Edcon renegotiate further reduced rental rates.

‘If anything will save Edcon, it will be the social compact,’ Cosatu spokesperson Matthew Parks said, referring to an understanding between the government, business and textile workers.

‘We work hand in glove. It is how the (December 2018) bailout came about in the first place.’

But at least one analyst said the lockdown – which is expected to shave another R800m from Edcon’s revenue on top of R400m already suffered in the two weeks before President Cyril Ramaphosa imposed the restrictions – has all but sealed the fate of the retailer.

‘My base case is it’s game over for Edcon … They have tried an array of options, but their balance sheet was just too weak and now being unable to pay suppliers puts those suppliers at risk too,’ said Evan Robins, listed-property manager of Old Mutual Investment Group’s Macro Solutions boutique.

Full Business Day report