Readers’Views
PIC is pouring money down the drain in Edgars salvage efforts
I read “Edgars lives another day — in a dying retail sector” (March 10) with interest. Having been in retail most of my life, I have to add a few issues.
The demise of John Orr’s, Stuttafords and Garlicks, the original backbone of retail in SA, was not only due to the move away from a department-store environment but the fact that all of them owned substantial properties.
That was where their value was. So when the owners were approached by developers, they did deals and closed most stores. Stuttafords continued to trade in shopping centres under different ownership until it finally bit the dust. Edgars doesn’t own properties, as far as I know, so can’t bargain with any developers.
So there is a lesson here. If Stuttafords was “downsized” in those days in order to survive, and didn’t, why should Edgars?
Bain Capital’s original deal with Edgars was a disaster. The fact that Edgars then sold its debtors book to Absa was a desperation move. So now the customers lose touch with the retailer and talk to a bank?
Edgars was the pioneer of extended credit in this country. This was its strength. Customers had to visit the stores to pay their accounts, so you continued to have traffic in the store. Obviously that would have changed in time with online applications, but, back then, that was the formula.
As much as I would like this new plan to work for Edgars and its creditors and landlords, I am in serious doubt. The PIC is pouring money down the drain, as are the landlords.
Unless Edgars management can pull the proverbial rabbit out of the hat, the end is nigh. Sad end for a business which was the mainstay of retail in SA.
Ed Nilson, Century City
Eskom woes could ruin us all
Maybe someone should calculate how much of the R400bn Eskom has borrowed is the result of corruption and mismanagement (or no management), “Nersa has starved Eskom of ‘papgeld’ ” (March 10).
The national resentment towards Eskom stems from the fact that citizens are forced to pay for its mismanagement and the government’s failure to stop the rot.
Eskom is drowning in debt, and its failure to provide affordable and reliable electricity could potentially ruin us all. Seems it is not going down without a fight — every time electricity prices are discussed, as if by magic a few blackouts happen.
Pierre Jordaan, on businessLIVE
As it is, our electricity is expensive by world standards. Industry and mining battle to remain competitive with imports, and so on.
I am surprised that the economists look at Eskom in isolation. Should they not analyse its woes in comparison with other countries such as Australia?
Nicolaas Joubert, on businessLIVE
Stealing taxes goes unpunished
The taxman has reminded consumers that failure to pay tax is a criminal offence. Yes, indeed — and stealing those taxes is a criminal offence, too, but they are laughing all the way to the bank.
James Drew, on businessLIVE