The North Gauteng High Court has placed the Post Office in business rescue following a request by the communication minister.
- Business rescue is expected to result in severe job cuts, but the number of job losses will be fewer compared to if the Post Office were to enter liquidation.
- The government has allocated funds to support the Post Office, with R2.4 billion already provided and an additional R3.8 billion earmarked for the medium-term budget policy statement in October.
- The Post Office is facing financial difficulties due to structural issues, including an oversized workforce, lack of modernization, and competition from private courier services.
- The judgment recognizes the need for significant job cuts to ensure the survival of the Post Office, and business rescue is seen as a less severe alternative to liquidation.
- The provisional liquidation of the Post Office in February led to the consideration of business rescue to avoid final liquidation.
- The judge acknowledges the important role of the Post Office both nationally and internationally, emphasizing the impact on the economy and the nation’s international responsibilities.