In a recent development concerning Ellies Holdings Limited, the business rescue practitioner, John Evans, has provided clarification regarding the company's future. Ellies Holdings, the JSE-listed holding company of the Ellies Group of operating entities, faced a significant setback with the announcement of its impending liquidation. However, John Evans emphasized that despite this development, Ellies Electronics, the company's primary operating subsidiary, remains unaffected and will continue its trading activities.
In a statement issued on Thursday, Evans addressed concerns arising from the notice published to the JSE news service late Wednesday afternoon. He highlighted the distinction between Ellies Holdings Limited and its operating subsidiaries, emphasizing that the latter is the focal point of the company's ongoing business operations. While Ellies Holdings' assets primarily consist of shares in its operating subsidiary companies, it is Ellies Electronics that drives the core business activities.
Shaun Prithivirajh, CEO of Ellies Electronics, reaffirmed the company's commitment to its customers and stakeholders. He assured that despite the challenges faced by Ellies Holdings, Ellies Electronics remains fully operational. Prithivirajh outlined the company's continued efforts, stating that the retail distribution business will continue to serve customers, trade counters will remain open, and ongoing projects will proceed as planned. Additionally, divisions such as satellite installations and solar power will continue to provide services to customers.
Evans further revealed that offers have been received from third parties interested in acquiring the operating divisions of Ellies Electronics. He expressed optimism regarding the potential sale of these divisions, which could secure the future of the company and its employees. The sale of viable operations would not only ensure the continuity of business relationships but also facilitate the transfer of employees to prospective acquirers.
Acknowledging the importance of maintaining transparency and communication, Evans encouraged customers and suppliers to seek clarification from the team at Ellies Electronics or himself. This proactive approach aims to address any uncertainties and reaffirm the commitment to stakeholders amidst the ongoing restructuring process.
In summary, while Ellies Holdings faces liquidation, the assurance provided by John Evans regarding the continued operations of Ellies Electronics offers a glimmer of hope for stakeholders. With a proposed business rescue plan set to be unveiled by May 10, 2024, the focus remains on navigating through the challenges while safeguarding the interests of all involved parties.
