The multinational retailer, which operates in eight African countries, including Kenya and Tanzania, has recently been characterised by empty shelves in its stores.
Its shares were suspended on account of the inability by company’s auditors PricewaterhouseCoopers to finalise the 2018 financial statements due to alleged irregularities.
Botswana-based supermarket chain Choppies Enterprises has signalled it could exit the East Africa, a week after announcing plans to leave South Africa.
The multinational retailer, which operates in eight African countries, including Kenya and Tanzania, has recently been characterised by empty shelves in its stores.
Indeed, the retailer listed on the Johannesburg and Botswana stock exchanges saw its shares plunge by more than 60 per cent since last September after announcing a delay in the publication of its financials.
Its shares were suspended on account of the inability by company’s auditors PricewaterhouseCoopers to finalise the 2018 financial statements due to alleged irregularities.
Now, as its woes mount following last week’s announcement of its South African market exit, the firm has called an extraordinary general meeting on September 4, hoping to resolve the squabbles that have brought it to its knees.
MONEY LAUNDERING
The troubles are traced to a dispute between the board led by former Botswana president Festus Mogae and suspended founder and chief executive Ramachandran Ottapathu over the control of the retailer. However, some allege mismanagement and financial impropriety.
During the extraordinary general meeting, shareholders will vote on resolutions contained in legal and forensic reports emanating from investigations into the retailer’s business and allegations of financial misappropriation and money laundering against Mr Ottapathu.Since late last year, Choppies has been hit by operational turbulence, including a failed rapid expansion programme, inability to pay suppliers and suspension from the Botswana Stock Exchange and the Johannesburg Stock Exchange.In Kenya, it has been forced to close down two stores outside Nairobi in quick succession, owing to stock shortage, evoking memories of the demise of the country’s leading regional retail chains, Nakumatt and Uchumi. EMPTY SHELVES Recently, Kenyan shareholders of Choppies entered into a deal with the Association of Kenya Suppliers that will see the retailer settle a $5.7 million debt owed to suppliers in a measure to restock its outlets and ensure it remains afloat.In the recapitalisation deal, Export Trading Group, which controls a 25 per cent stake, will settle debts owed to suppliers in three tranches. It was not clear if the Export Trading Group is seeking more stake or […]
