Electronics group Eriez announced on Wednesday that it would apply to the court for a winding-up order after business rescue expert John Evans concluded there was no reasonable prospect of saving the business.
At the end of January, the electronics group, which has been in business for more than 40 years, announced its intention to embark on a rescue mission amid the collapse of a key acquisition.
Founded in 1979, the company imports and sells LED lighting, electronics and solar solutions. The company's bankers have refused to finance its approximately R200-million acquisition of backup power specialist Bundu Power, the company said.
Read | Eriez embarks on business rescue amid Bundu power tender collapse
Eriez, which operates satellite and aviation equipment, accessories and hardware, is under severe strain from lower DStv installations and consumer pressures, partly due to the impact of the SABC broadcasting the 2022 FIFA World Cup. It had been.
The group last traded at 1 cent per share on the JSE, with a market capitalization of just about R8 million. This is a far cry from its heyday, when it went public in 2007 and reached nearly R10 per share in 2013.
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