CAPE TOWN Johnnic Book Retail, formerly CNA Gallo, has pulled retail and property investment company Wooltru into a R20m legal claim that former CNA pensioners have instituted against Johnnic.
Wooltru sold CNA, the stationery retail chain, to Gordon Kay & Associates in early 2001 but last year two of the CNA companies were placed in liquidation. Most of the outlets, and the brand, were sold to Edcon last year.
Wooltru said yesterday a former employee of one of the liquidated CNA companies had brought a test case against Johnnic for payment of 75% of his post-retirement medical aid obligations.
He also sought a declaration by the court that Johnnic was liable to pay this until his death.
Johnnic is defending the claim and has joined Wooltru as a third party in the proceedings.
Wooltru bought the CNA companies from CNA Gallo before selling the companies off to Gordon Kay. Johnnic claims Wooltru contractually bound itself as co-principal debtor and surety for the compliance of the CNA companies for these obligations.
This liability is estimated at R20m. Wooltru said it was going to put up a defence against the claimed liability.
In addition to the pensioners' claim, Wooltru was also facing a potential claim of R115m from the liquidators of the CNA companies.
Aug 29 2003 07:11:18:000AM Charlotte Mathews Business Day 1st Edition
Publisher: Business Day
Source: Business Day
Johnnic Book Retail gets co-defendant.
Posted On Friday, 29 August 2003 02:00 Published by eProperty News
CAPE TOWN Johnnic Book Retail, formerly CNA Gallo, has pulled retail and property investment company Wooltru into a R20m legal claim that former CNA pensioners have instituted against Johnnic.
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