Edgars' move to Durban 'contrary to agreement' say former staff
Retailability's decision to relocate Edgars' head office in December from Johannesburg to Durban was contrary to a promise made to staff and has left about 60% Edgars' merchandise staff without employment, sources said on condition of anonymity.
In the case of the footwear department, it is understood that out of a team of 18 buyers and planners, 3 moved. "The rest have lives and responsibilities in Johannesburg. Relocating wasn't a realistic option," one source said.
"Retailability decided on 30 November to move Edgars' head office to KZN, 3 months after the takeover. Originally, the agreement was that such a move wouldn't happen for between 6 and 12 months."
"The reason they gave us was that the business hadn't turned around - which is unreasonable, I think, after it had been in business rescue for months.
"Head office staff could have contested the decision, but we decided instead to accept a package."
Retailability CEO Norman Drieselmann didn't respond to requests for comment.
Retailability has appointed Hayley Roberts and Mellissa Edwards as heads of footwear buying and planning respectively. Tania Deyzel and Yolande Dicks are buyer and planner respectively of women's private label footwear, Lesley Williamson and Claire Trollope are buyer and planner respectively of women's branded footwear, Dion Smith, Giulia Evelyn and Dhaveshandra Naidoo are buyer, planner and allocator respectively of men's private label footwear and Geoff Butcher is buyer and planner of men's branded footwear.
The Competition Tribunal last September approved, with employment conditions, Retailability's purchase of Edgars.
"The Tribunal has approved the transaction on condition that the merger parties shall not retrench any employees on account of the merger for a period of 3 years from the merger implementation date. In addition, the acquiring firm will give preference to any former Edcon employees should vacancies arise within 3 years of the merger implementation date."
"The Commission, in its assessment, was of the view that the transaction is unlikely to substantially prevent or lessen competition. In addition, it found that the merger will result in 5200 jobs being saved."
