Botswana based retailer Choppies Supermarket has decided to clear its bulky electronics inventory and concentrate on selling fast selling consumer goods in an effort to address the cash crunch at the company.
The company made the announcement, which was inviting bidders to view the assets, in the local dailies on Friday last week through investment bank Dyer and Blair.
“The bidders will have the opportunity to view the assets and subsequently conduct due diligence in order to submit final binding purchase offers,” the notice by Dyer and Blair reads in part.
A local daily however reports that the retailer distanced itself from the Friday notice saying that it had not sanctioned the fire sale of electronics from its premises.
Choppies has been struggling to make ends meet in the Kenyan market in recent times. In August, the supermarket closed its Nanyuki based outlet highlighting the store’s dwindling fortunes in the Kenyan market. The closing of the store, which was located at Nanyuki’s Nanyuki Mall, brought the total number of Choppies’ outlets that have been closed in the country this year to three. In July this year, the retailer shut down operations at its Bungoma and Kiambu branches citing reduced business in the Kenyan market as the reason that informed the decision. The retailer has also been experiencing stock outs amid rising operation costs which have contributed to the poor run of business.
Last month, the company similarly retrenched 200 employees from its payroll. Prior to making the layoffs announcement, Choppies had announced plans to exit the Kenyan market.
“Zambia has a steady performance in a volatile economy, Kenya’s distressed business has been identified for disposal. Tanzania and Mozambique are distressed while Namibia is performing as expected. In Botswana there is steady income flow under difficult trading circumstances, South Africa North West business is distressed and identified for disposal,” Wilfred Mpai, Choppies director said then.
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