Although Ellies Holdings is facing liquidation, the group’s underlying businesses could yet be saved.
has been suspended from trading on the JSE – and, barring a miracle, won’t trade again – the group’s underlying businesses, and the Ellies brand, are likely to be saved., who spoke to TechCentral in an exclusive interview this week about how the storied South African company got itself into difficulty, and why he’s confident the brand – and jobs – can be saved.
The decision by Ellies’ lenders not to fund the acquisition of Bundu Power was the straw that broke the camel’s back, prompting the decision in January to place the company into voluntary business rescue. The Bundu deal had been key to a plan by Prithivirajh and the board to save the company, which was founded in 1979 by the late Ellie Salkow.
Ellies had hoped to pivot into the home solar market, but lacked the working capital to do so at scale “The real sword of Damocles that has been hanging over us has been our historic debt. It was sucking about R25-million out of working capital annually with little to show for it.” It had been the company’s plan for years to pivot into home solar installations, and it had even launched a small solar installation business, called Ellies Solar. But the lack of working capital hamstrung its plans to expand rapidly in that market.“To play in that space as a distributor, you need a lot of working capital,” he said. “That’s the hurdle we could not overcome.”
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Ellies Holdings is dead, long live Ellies ElectronicsEllies says reports of its death are greatly exaggerated.
Read more »
Ellies Holdings receives buyout offers to save the companyEllies Holdings, the main operating subsidiary of Ellies Holdings, has received buyout offers from unnamed third parties that its CEO believes could save the company. This comes after the company failed to secure backing from its bankers for an acquisition that formed a key part of its turnaround plan.
Read more »
Electronics group Ellies headed for liquidationElectronics group Ellies headed for liquidation
Read more »
Collapse of Ellies points to much larger issue in SA’s world of business developmentInstead of investing in the development of their brand, Ellies products just sat on a random shelf somewhere in a Builders Warehouse.
Read more »
Ellies applies for liquidationRescue practitioners say there is no prospect of it being rescued.
Read more »
Ellies, JSE-listed electronics manufacturer, to be liquidated after failed business rescue effortsJSE-listed electronics manufacturer and distributor Ellies is being liquidated after business rescue efforts failed to bear fruit. The company announced that attempts to resuscitate the business had gone belly up.
Read more »