(Ecofin Agency) - The Foschini Group (TFG), a company listed on the Johannesburg Stock Exchange and specializing in the retail sale of fashion goods (clothing, jewelry, sports equipment, cosmetics) and household goods, has announced that it will not be paying April 2020 rents due to the closure of all its 2,582 local stores. The closure follows the 21-day lockdown announced by the South African government to reduce the spread of the coronavirus.

“The lockdown places many sectors and the economy under tremendous pressure. In these extraordinary times we must find ways to navigate the current climate, find solutions to mitigate the impact and ensure business continuity,” commented Brad Rothenburg, TFG’s head of property. Rothenburg said that he will conduct a financial impact assessment of the closure once the situation has stabilized and will engage in a dialogue with the owners of the leased space.

In the six months ended September 30, 2019, TFG posted sales of R18.6 billion, up 6.3% from R17.5 billion in the same period in 2018.

Chamberline Moko