Electronics group Ellies has filed for business rescue after its bid to expand into the renewable energy market faced significant setbacks.
- The company’s attempt to acquire Bundu Power for R203 million has fallen through due to a lack of support from lenders.
- The failed acquisition has rendered Ellies’ proposal null and void, highlighting the financial challenges it currently faces.
- The move to file for business rescue is aimed at restructuring the company’s operations and finances in order to avoid liquidation.
- Ellies’ foray into the renewable energy sector was seen as a potential growth opportunity, but the lack of backing from lenders has hindered its progress.
- Business rescue will provide Ellies with an opportunity to reevaluate its strategies and explore alternative options to ensure its survival.
- The filing for business rescue reflects the challenging landscape faced by companies in the telecoms and technology sector, where market conditions and competition can be unpredictable.