Retail group Edcon is selling stationery retailer CNA to a consortium majority owned by JSE-listed Astoria Investments.
The sale is in line with Edcon’s strategy to focus on its core business through the realignment of its retail brands and operations, the group said in a statement on Tuesday.
CNA, which in recent years has become a limited retailer of cellphones and other consumer electronics items including laptop computers and game consoles, will focus on its “original building blocks” under its new owners, namely books, stationery, magazines and gifting.
In all, 167 stores will change hands. The deal is subject to customary regulatory and other approvals and won’t result in any direct job losses, Edcon said. The transaction includes all brands and trademarks, with the business continuing to trade under the CNA brand name.
“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,” said Edcon CEO Grant Pattison in the statement.
“The new owners have the muscle and extensive management focus and leadership expertise to invest in the business.”
‘Simple model’
Other Edcon brands include Edgars and Jet. “Edcon has a simple business model that is focused on delivering an enhanced customer experience, and an optimised store portfolio, ultimately creating a focus on our three divisions: Edgars, Jet, and Thank U,” Pattison said.
Under its new owners, CNA will be “community focused, supporting and encouraging reading while catering for the entire stationery needs of consumers throughout South Africa”. — © 2020 NewsCentral Media
