End of an Era: 130-Year-Old CNA All but Vanishes From South African Malls

For generations of South Africans, a trip to the mall wasn’t complete without a stop at CNA. The familiar red and white signage promised newspapers, books, stationery, and giftsa one-stop shop for reading and writing that became a national institution.

Today, that institution is all but gone.

The Central News Agency (CNA) , established in 1896 and a fixture in South African retail for 130 years, has virtually ceased to exist. Placed in business rescue in 2021, the chain that survived two world wars could not survive the perfect storm of modern retail: intense competition, changing consumer habits, and the COVID-19 pandemic.

A Retail Giant Falls

When CNA entered business rescue, it owed creditors R264 million, including former staff, suppliers, and landlords. Under the rescue plan, more than 80 non-profitable stores were closed, the head office was shut down, and management salaries were cut by more than 40%.

The plan was to reduce the footprint from 163 to 55 stores nationwide. It didn’t work.

“CNA was sold in terms of an adopted business rescue plan to a purchaser consortium that included the Everland Group,” said Stacey Roux, a representative of the business rescue practitioners.

But the rescue unravelled. Shareholder disputes within Everland led to store closures. Now, Everland itself is in liquidation.

“It has also come to our attention that Everland is in liquidation and that Icon Insolvency Practitioners are administering that liquidation process,” Roux said.

What Killed CNA?

The causes of CNA’s collapse were multiple and mutually reinforcing.

Intense competition from retailers like the Australian chain Typo, which offered trendy, affordable stationery, ate into CNA’s core market. Online retailers packaged and sold stationery with convenience and pricing that brick-and-mortar stores couldn’t match.

Consumer demand weakened as the market shifted. And then came COVID-19, which delivered a blow from which the chain never recovered.

A 130-Year History

CNA’s story is intertwined with South Africa’s own history. It was founded in 1896 in Johannesburg, then a mining town, by business partners Michael Davis and Albert Lindbergh. Initially focused on selling and distributing newspapersincluding the Rand Daily Mail and Sunday Timesit quickly became a fixture.

By 1901, CNA was opening bookstores at railway stations. By 1904, it had stores across the country. During World War I, it expanded amid high demand for news. By 1932, it was the sole agent for 92% of all British newspapers distributed in South Africa.

The company survived the bombing of its London suppliers during World War II, expanded into Rhodesia (now Zimbabwe) in 1951, and merged with Gallo Africa in 1983. By 1994, CNA had 316 stores nationwide.

Edcon bought CNA in 2002 for R130 million. In 2020, Edcon sold 167 stores to a consortium led by Astoria Investments. A year later, CNA was in business rescue. Parts of the company, including 60 stores, were sold to Black Mountain Investment Management Group for just R2 million.

The Empty Spaces

Today, the spaces where CNA once stood are filled by other retailers. The familiar red signage is a fading memory. For shoppers of a certain age, walking past those empty storefronts is a reminder of a time when buying a book or a notebook meant a visit to CNA.

The retailer’s disappearance is more than a business story. It’s the end of an eraa 130-year chapter in South Africa’s commercial and cultural history. And like all endings, it leaves behind not just empty stores, but the memories of generations who grew up within their walls.

{Source: BusinessTech}

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