Edgars had last month announced plans to close 19 of its 55 outlets citing viability problems triggered by a controversial government blitz on prices that forced producers and retailers to sell at a loss.
The retail chain said it would be closing down five of its branches in Bulawayo, Gweru, Chitungwiza, Highglen and Gwanda. It would also close 14 of its Express shops in Harare, Bulawayo, Marondera, Rusape, Chitungwiza, Bindura, Chegutu, Chiredzi, Plumtree, Gokwe, Karoi, Mutare and Kwekwe.
Industry and International Trade Minister Obert Mpofu reacted to the news by threatening to take-over Edgars at a meeting held with clothing shops at a Bulawayo hotel last month.
Edgars ignored Mpofu’s threats and proceeded to shut down some of its shops in Bulawayo, citing difficulties in restocking after the government’s order to companies to halve prices in June.
Edgars managing director Raymond Mlotshwa confirmed the closures.
The company manufactures some of its merchandise through a subsidiary called Carousel. In the interim financial results released last month, Edgars spoke of a bleak future, warning that in addition to the negative effects of the government price blitz, the retail giant also faced a serious debt problem. – ZimOnline
Post published in: News