JSE-listed food retailer and Africa’s biggest grocer, Shoprite, has seen the high-end furniture retailer, Whetherlys, as a buy opportunity, South Africa’s competition authorities said on Thursday.

Wetherlys is owned by Ellerine, the furniture retailer which is a unit of the bombed-out provider of unsecured loans, African Bank Investments Limited (ABIL).

The Competition Commission has also suggested that the transaction, whose worth has not been revealed, be permitted on the proviso that Shoprite does not retrench the over 300 workers that work at Wetherlys.

Ellerine is under protection from creditors, similar to Chapter 11 bankruptcy in the United States, after its parent collapsed under a mountain of bad debts in August, according to Reuters.

ABIL owes creditors about R1.3 billion ($110 million) as non-performing loans took their toll on the company’s finances this year.
Ellerine has gotten a R400 million ($34.7 million) offer for its almost 80 shops outside South Africa and has received the Competition Commission’s initial go ahead to dispose of 63 stores of its Beares brand to Lewis Group for $8 million.

The Competition Commission has also given a go ahead for the purchase of Dial-a-Bed by Coricraft. Other Ellerine brands include Ellerines stores, Furniture City and Geen & Richards.