Ellies Holdings is dead, long live Ellies Electronics

Ellies business rescue practitioner John Evans has clarified that the company’s main operating subsidiary, Ellies Electronics, will continue to trade.

This follows a notice published late Wednesday afternoon to the JSE news service stating that Ellies Holdings could not be rescued and would be liquidated.

“We would like to clarify the recent SENS announcement,” Evans said in a statement on Thursday.

“Ellies Holdings Limited is the JSE-listed holding company of the Ellies Group of operating entities,” he said.

“Its only assets are shares in its operating subsidiary companies.”

Evans is the business rescue practitioner for both entities.

He assured Ellies Electronics continues to trade and is on track to publish a proposed business rescue plan by 10 May 2024.

“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,” said Ellies Electronics CEO Shaun Prithivirajh (pictured).

Evans said he has received offers from third parties who wish to acquire the operating divisions.

He is hopeful that the sale of these viable operations will be concluded in the coming weeks.

This will ensure the continuation of business relationships and allow a significant number of employees to be transferred to prospective acquirers.

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

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