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The Foschini Group (TFG) has officially purchased 382 stores from Edcon’s Jet business.
In July, the group entered into an agreement to buy certain commercially viable stores and selected assets of Jet, a clothing retail division of the embattled Edcon, for a cash purchase of R 480 million.
On Friday, the group announced that the sale had been a success and that it will hire 4,800 employees from Jet stores.
TFG has 29 retail brands that market clothing, footwear, jewelry, sportswear, household items, cell phones and technology products, from value segments to upper market segments, in more than 4,085 points of sale in 32 countries .
The group’s chief executive, Anthony Thunström, says that 2020 has been a year of profound global change, as the Covid-19 pandemic created unprecedented uncertainty and put enormous pressure on communities and businesses.
He says this purchase represents much more than an unprecedented business opportunity to help further drive TFG’s continued growth as it secures workers’ jobs.
“Our strategic focus is to drive sustainable economic growth through successful businesses and investments in retail, local manufacturing and digital transformation, as well as skills development in South Africa. Jet ticks each of these boxes: it is a great brand, it will support greater localization of supply chains and the company will be able to benefit from TFG’s advances in digital transformation, ”says Thunström.
Initially, the group had planned to acquire approximately 371 Jet stores in five countries, but now it will have about 425 stores in total.
The acquisition of TFG in South Africa includes:
- The Jet brand;
- Ownership of more than 382 Jet stores,
- The acquisition of associated property, plant and equipment for the agreed Jet Stores and the Durban distribution center;
- The Jet Club Magazine Rights;
- All existing share holdings;
- Transfer of selected key executives and approximately 4,800 Jet employees.
