Top store hopes to bounce back after rescue plan

THE embattled Stuttafords says it anticipates being out of business rescue by the beginning of March, subject to approval of the business rescue plan next month.

Stuttafords, once a top retailer in South Africa, had last year sought voluntary business rescue as it continued to battle with slowing consumer spending and tough competition.

The company had feared it could be liquidated if the business rescue plan was not adopted, but remained confident that the process was not intended to have any effect on its 950 employees throughout group.

Stuttafords believed the business rescue application afforded it the “breathing space” needed to restructure and reorganise its affairs, to position itself in the most appropriate manner and take advantage of future trading opportunities.

The high-end retailer of branded fashion, apparel, footwear, accessories and cosmetics has 12 department stores; nine in South Africa, one in Namibia and two in Botswana. Four of the company’s stores are situated in Cape Town.

This week, Stuttafords chief executive Robert Amoils said the festive season has showed positive results in terms of margin and profitability despite “depressed turnover” levels.

“Given the payment moratorium applicable to debts owing as at October 2016, the company holds significant amounts of cash from its trading operations post filing for business rescue,” he said.

Amoils said many avenues had been explored including third-party investment and further shareholder funding.

“In terms of the payment moratorium, no payment relating to debts owing as at October 8, 2016 can be made unless in terms of an approved business rescue plan. Post filing for business rescue, the company has continued to acquire stock and pay for services to maintain trade and profitability,” said Amoils.

In 2009, Stuttafords was bought by a consortium led by Ellerine Brothers and Vestacor.