Hanes South Africa, the South African manufacturer and licence holder of the Wonderbra and Playtex brands has filed for provisional liquidation.
Hanes files for provisional liquidation
Business Insider reports that Hanes has applied for voluntary liquidation. The Durban-based company has the licence to manufacture Playtex and Wonderbra in South Africa and other African countries.
A Hanes spokesperson told Netwerk24 that there is currently no plan to appoint an alternative distributor for the products in South Africa. Furthermore, it is reported that the 60-year-old company’s factory in Mobeni East has been shut since early January, according to an IOL report, leaving over 700 employees without work.
In a statement released by Hanes South Africa, the company said: “After careful consideration, the board of HSA has decided to file for creditors voluntary liquidation as it believes this will be the best outcome for staff and other affected parties.
“We are committed to ensuring our employees are treated fairly and that they will receive all termination rights in respect of South African labour laws. All activities are suspended with immediate effect and our premises at Lawley Street 101, Durban are closed until further notice.”
This essentially means that consumers will not be able to purchase products such as Wonderbra and Playtex in the country. It is said that the Wonderbra online store has already stopped taking orders in South Africa.
It is further reported that Hanes blamed the weak local economy, worsened by the pandemic, as well as the business rescue process of a “big client” for its demise. Netwerk24 believes that this can only refer to Edgars, and the Hanes spokesperson confirmed that Edcon owes it money for stock that has been supplied.
On the brink of business rescue
This comes after the giant Edcon group, which owns the Edgars and Jet retail brands, reported that it was on the brink of business rescue and possible collapse last year due to the state of national disaster and subsequent lockdown dried up the cash flow of the already troubled business. In June 2020, Edcon confirmed that they’ve sent 22 000 retrenchment notices to staff across the country working in their various stores.
The movie franchise Ster-Kinekor also confirmed on Friday 29 January that it had been in talks about voluntary business rescue proceedings. The company said in a statement that the “COVID-19 pandemic and the consequent economic lockdown had taken its toll on the franchise. Business rescue would now be implemented in a bid to facilitate the company’s rehabilitation”.
For the time being, Ster Kinekor cinemas will remain open to the public until further notice. Ster Kinekor’s acting CEO, Motheo Matsau explained that customers’ safety remains priority while the cinema remains open for business:
“All cinemas have instituted strict COVID-19 protocols, which mean temperature checks and hand sanitising on arrival and inside the auditoria and mask wearing as appropriate”.
In addition to the above, “every two seats are kept vacant for social distancing”.