The announcement comes as the group continues its restructuring to turn the struggling business around after securing a R2.7 billion recapitalisation lifeline in March last year from the Public Investment Corporation, existing lenders and several of its landlords.
Commenting on the deal, Edcon CEO Grant Pattison said that as part of a simpler business model the group is optimising its store portfolio to focus on its three divisions: Edgars, Jet, and its Thank U customer loyalty and financial services division.
“The ongoing process of consolidating, merging and rebranding of the businesses will ensure an offering of a selected set of private and some international brands, while also being a fashion and beauty retailer that provides credit,” he said.
“As I have always said, CNA is an important but not a strategic part of the Edcon business, as it is not focused on clothing, beauty and home categories, and we would only sell if it’s good for CNA.
“I am also pleased that this transaction will not result in any job losses.”
Edcon said that the Astoria consortium, led by Jan van Niekerk, intends to focus CNA on the original building blocks of its founders, with books, stationery, magazines and gifting at its core.
CNA was formed in 1896 by two newspaper sellers in Johannesburg and was acquired in 2002 by Edcon, which was listed on the JSE at the time.
