Electronic products group Ellies on Monday announced that it would embark on a Section 189 process, citing ongoing constrained trading conditions.
The JSE-listed company said it would seek to minimise potential retrenchments and, together with affected stakeholders, would seek viable alternatives which would assist the group in returning to profitability.
The company, which is a wholesaler, importer and distributor of lighting, electrical and electronic equipment solutions, did not indicate how many employees would be affected by the Section 189 process.
According to the Labour Relations Act, a Section 189 process allows employers to dismiss employees for operational purposes.