Ellies is dead – but Ellies Electronics says it’s still kicking

Ellies Electronics clarified today that it will continue to trade despite recent news that its parent company, Ellies Holdings, will be liquidated.

Ellies Electronics is the main operating subsidiary of the Ellies Group and contains all cash-generating business units in the group.

Ellies Electronics clarified that Ellies Holdings Limited is the JSE-listed holding company of the Ellies Group of operating entities.  

“Its only assets are shares in its operating subsidiary companies”, explained John Evans, business rescue practitioner for both Ellies Holdings and Ellies Electronics.

This comes after Ellies Holdings announced yesterday that its business rescue practitioners have decided to place the company into liquidation.

In a SENS announcement released on 10 April, Ellies Holdings said its business rescue practitioner has concluded that there is no reasonable prospect of the company being rescued.

Therefore, an application will be made to the court for an order to discontinue the business rescue proceedings and place the company into liquidation. 

This comes after Ellies Holdings entered into voluntary business rescue proceedings on 31 January 2024 and the appointment of its business rescue practitioner on 6 February 2024.

However, Ellies Electronics said it continues to trade and is on track to publish a proposed business rescue plan by 10 May 2024.  

Ellies Electronics CEO Shaun Prithivirajh said, “The retail distribution business will continue to supply its customers, the trade counters will remain open for business, the commercial projects division will continue to install and commission projects that are underway, and the satellite installations and solar power divisions will continue to install systems for its customers.”

He said the business rescue practitioner has received offers from third parties who wish to acquire the operating divisions and is hopeful that the sale of these viable operations will be concluded in the coming weeks. 

“This not only ensures the continuation of business relationships but also provides the opportunity for a significant number of employees to be transferred to the potential acquirers,” he said.

“The fact that Ellies Electronics continues to trade is an important factor for all stakeholders to note.” 

“We would like to encourage all customers and suppliers who require further clarification to contact the team at Ellies Electronics or myself.”