Edcon today announced they are to acquire clothing chain Topic(s) at a discount to Net Asset Value (NAV) by using cash resources. Pending approval from the Competition Authorities, and a due diligence investigation, the transaction will be effective from 29th May 2005.
"Topic(s) has a very healthy property portfolio of over 125 smaller format stores averaging a little over 300 m2, in a variety of locations suitable for Edcon expansion, together with a debtors book of approximately 200,000 customers and an established turnover base of over R320 million," Chief Executive Steve Ross said.
"We're always on the lookout for sensible acquisitions that complement our offering, our debtors book and/or the property portfolio. Topic(s) has these attributes and combined with well trained staff makes this an ideal addition to the Edcon stable."
In addition to its acquisition of SuperMart, Boardmans and CNA, Edcon has also recently successfully launched three smaller format stores, ‘Legit' for the young, fashion and budget conscious buyer, ‘Prato' for designer shoes and the standalone ‘Jet Shoes' stores.
Ross said the Topic(s) stores will be maintained in their current format as the Group determines which locations may offer greater growth or profit opportunity from Edcon's other trading formats.
"We will need the operational and corporate staff currently employed by Topic(s) to support the trading Topic(s) stores or elsewhere within the greater Edcon Group," said Ross. "Topic(s) staff will have access to the extensive career development provided by the Edcon Group, such as myriad in-house training and leadership courses, as well as participation in the performance recognition scheme and other staff benefits."
A spokesperson on behalf of the company that owns Topic(s) said: "We are extremely happy to transact with a company of Edcon's stature and success record and believe that Topic(s) will realise its full potential as a member of the Edcon group."
Edcon currently trades under the following brands: Edgars, Jet, Legit, Boardmans, Red Square, JetMart, CNA, Prato and Jet Shoes.