The Ellies Electrical brand will live on after SMD Technologies acquired it following the liquidation of the parent group, Ellies Holdings.
According to various media reports on Friday, SMD – which owns or represents a number of consumer electronics brands in South Africa including Volkano and Sony – has acquired the storied Ellies brand, which is known for its wide range of electrical products, from surge protectors to multi-plug adapters and load shedding backup solutions.
In an exclusive interview with TechCentral in May, Ellies CEO Shaun Prithivirajh said a deal was being negotiated to save the underlying Ellies business and the brand. This is after Ellies applied for liquidation after it failed to secure backing from its lenders for an acquisition that formed a key part of a turnaround plan. Ellies had been placed in voluntary business rescue in January.
Referencing an SMD Technologies statement late on Friday, various media reports quoted the company as saying that the purchase of the Ellies electrical brand “will ensure the trusted brand remains available to its loyal customers”.
“The acquisition by SMD Technologies is set to revitalise the brand, leveraging SMD’s innovative approach and robust distribution network. By integrating the Ellies electrical brand into its portfolio, SMD Technologies aims to uphold the legacy of the Ellies brand while introducing new innovations that meet the evolving needs of consumers.”
There was no word on how many of the 200 remaining jobs at Ellies Electrical had been saved through the sale.
What went awry
In the May interview with TechCentral, Prithivirajh provided detailed insight into what went awry at Ellies that it went to the wall.
He explained that the decision by Ellies’ lenders not to fund the acquisition of Bundu Power was the straw that broke the camel’s back, prompting the decision in January to place the company into voluntary business rescue.
The Bundu deal had been key to a plan by Prithivirajh and the board to save the company, which was founded in 1979 by the late Ellie Salkow.
The full interview with Prithivirajh can be read here. – © 2024 NewsCentral Media