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Sept. 12 (Bloomberg) -- Ellerine Holdings Ltd., the furniture retail unit of failed lender African Bank Investments Ltd., said it has attracted potential buyers since it started business rescue proceedings, akin to Chapter 11.
“The offer process is under way, with several potential purchasers having expressed their interest in considering the acquisition of all or parts of the business,” Johannesburg- based Ellerine said in an e-mailed response to questions today, without giving details.
Sales at Ellerine started dropping after it was acquired in 2008 by Abil, as the lender is known. Since 2013, it has made losses of at least 70 million rand ($6.4 million) a month. When Abil failed and withdrew its funding after Aug. 6, Ellerine went into bankruptcy after almost 60 years in business. Administrators are now trying to save the operations, which provided jobs for 8,000 people across 940 stores.
“Ellerine’s management is considering a restructuring of their retail footprint, which may result in store closures and have an impact on jobs at store level, as well as at head office and within the supply chain,” the company said. “A consultative process with employees will commence shortly.”
To contact the reporter on this story: Renee Bonorchis in Johannesburg at firstname.lastname@example.org To contact the editors responsible for this story: Dale Crofts at email@example.com John Viljoen, John Bowker