ELLERINES Group has assured its staff and customers in Lesotho that they will not be affected by business-rescue processes currently underway in South Africa.
In November 2014, South Africa’s moneyweb reported that the company faced closure by end of January 2015 after a rescue plan to sell its brands and raise capital failed.
Read the moneyweb article: “Ellerines Holdings Ltd, the furniture retail unit of failed African Bank Investments Ltd, may close down by the end of January after a rescue process to sell all its store brands and raise capital fell short.
“Of the six store brands, Ellerines sold Dial-a-Bed to Coricraft Group Pty Ltd for M200 million and Lewis Group Ltd agreed to buy the Beares brand for M40 million on 31 October. While there were more than 50 bidders in the asset-sale process, brands Ellerine, Geen & Richards, Wetherly’s and Furniture City didn’t receive viable offers.
“The remaining stores will trade over the festive season, offering discounts in January and closing at the end of that month if they haven’t been sold to other parties, the business- rescue practitioners said.”
However, in response, the company’s Managing Executive, Shaun Prithivirajh, said this was not entirely the case.
“Our doors are open and we are trading as usual. We assure customers of our commitment to servicing their needs with a great range of products and some really exciting offers over the next few months,” Mr Prithivirajh said in a statement released on Friday.
“We are still in business in southern Africa and there are plans for growing the existing footprint in Namibia, Botswana, Lesotho, Swaziland and Zambia.
“In this regard, the Ellerines, Beares and FurnCity brands trade under separate companies in the various countries in southern Africa and, accordingly, are not affected by the business-rescue proceedings in South Africa.
“With optimistic trading forecasts, Ellerines, Beares and FurnCity intend on launching new product-ranges, exciting customer-promotions and improving their Club-offering.
“Customers in southern Africa are therefore encouraged to disregard rumours that Ellerines, Beares and FurnCity are closing or are also going through a business-rescue process as in South Africa. In addition, customers need to continue paying their accounts in order to maintain a good credit record and avoid legal processes to obtain payment.”