Edgars loses main distribution hub
Clothing retailer Edgars lost its major distribution centre in an arson attack after it caught alight when a neighbouring warehouse was set on fire. CEO Norman Drieselmann told Business Day on Friday: “Fortunately, we have plans in place to cover us in the short term … We are in full recovery mode.”
Clothing retailer Edgars lost its major distribution centre in an arson attack after it caught alight when a neighbouring warehouse was set on fire.
More than 1,000 retail stores, including those owned by Spar, TFG, Massmart, Mr Price, Pepkor and Cashbuild, were looted last week, with some of these set alight and some supply chain infrastructure targeted.
The loss of Edgars’s main distribution centre will be a blow to the company that is trying to break even after its owner, Edcon, went into business rescue in 2020 and it was sold to privately owned Retailability in August in a deal that saved almost 5,000 jobs.
Retailabilty, which owns Beaver Canoe and Style clothing brands, has more than 600 stores in SA, Namibia, Botswana, Lesotho, Swaziland and Zambia.
Edgars initially struggled to sell sufficient stock in late 2020 after it had been in business rescue and not enough orders for new stock had been placed. It could now face stock shortages again after the arson.
CEO Norman Drieselmann told Business Day on Friday: “We have had our distribution centre burnt down. The fire started in our neighbour’s warehouse and spread.
“Fortunately, we have plans in place to cover us in the short term. With 50 stores looted, of which nine were burnt, we are in full recovery mode.”
He did not give further details, saying his immediate focus is the safety of his staff and ensuring all those in KwaZulu-Natal have access to food and essential supplies.
Edgars is not alone in losing a major logistics facility. Rioters burnt down Massmart’s Riverhorse centre after looting it. SAB’s distribution centre in Pietermaritzburg was looted and rioters gained access to a distribution centre of brewer Heineken. A warehouse in New Germany belonging to Distell, SA’s largest alcohol producer, was looted.
A warehouse belonging to Pepkor’s JD group, which sells furniture and electronics, was burnt down, but the company has 15 other distribution centres to service its Bradlows, HiFi Corporation and Incredible Connection stores.
WITH 50 STORES LOOTED, OF WHICH NINE WERE BURNT, WE ARE IN FULL RECOVERY MODE