Frame Leisure fades

Outlets in group declines from 56 to 19 in just months..

- Roy Cokayne

LIQUIDATED: VOLUNTARY BUSINESS RESCUE DIDN'T WORK FOR SPORT RETAILER

Sports lifestyle retailer Frame Leisure Trading, which operates The Cross Trainer, XKids and XTrends stores and entered into voluntary business rescue in August this year, is to be liquidated.

Business rescue practitioners (BRPs) George Nell and Gideon Slabbert informed all affected persons that, after investigating the company's affairs and financial situation, they concluded there was no reasonable prospect of the company being rescued.

An urgent application for the liquidation of the company was lodged in the High Court in Pretoria on Thursday, and is expected to be heard this week.

Nel told Moneyweb the company has been in business for 29 years and had 391 employees at the beginning of the year, but this has now declined to 175.

At the onset of the business rescue, the BRPs said the company had 56 operational retail outlets in major shopping centres.

Terminated leases

However, several landlords have terminated their lease agreements with the company and subsequently evicted it from their premises because Frame Leisure Trading was not in a position to pay any meaningful compensation to the landlords.

Nel said the 56 operational retail outlets at the onset of business rescue have now diminished to just 19.

The BRPs said in the letter to affected persons their conclusion that the company cannot be rescued is based on legal and financial advice taking into consideration a number of factors, including:

> The inability to obtain the required financial support for the company and post-commencement financing;