The knock-on effects of coronavirus-induced lockdown are emerging gravely in South Africa – clothing stores, Edgars and Jets might not survive the loss the lockdown will bring.
The companies might not re-open after lockdown as it would have lost about R400 million for the month of March.
The CEO, Grant Peterson says the about 1,000 stores will close and it will cost them about R800 million in sales.
That’s according Edcon CEO Grant Pattison who told suppliers on the eve of the lockdown that March revenue will be R400-million below forecasts.
Through the devastating blow to Edcon suppliers, Pattison emotionally said the company only has sufficient liquidity to pay salaries, and is unable to honour any other accounts payable during the period.
However, unaccountable losses abound across the nation from small businesses that may be badly hit by the lockdown.
Already, many are crying that the 21 days is like ticket to hell fire.