Edgars folds under pressure

edgars_logoBULAWAYO - Edgars has closed most of its shops in Zimbabwe and retrenched hundreds of workers due to depressed business. Their Zimbabwe managing director, Raymond Mlotshwa, said the companys retrenchment exercise was meant to ensure survival.

The half-year financial results showed depressed demand in the clothing sector therefore we have retrenched some workers to improve conditions of those remaining as the company was failing to pay them proper salaries, said Mlotshwa. Our workers are getting low wages and salaries. As a sector, we see our fortunes closely linked to those of our economy.

The large-scale clothing store has failed to recover from a 2007 decree by previous President Robert Mugabes government forcing businesses to slash prices by half under Operation Dzikisai Mutengo (Reduce Prices).

Meanwhile, the retail chain has introduced a three-month credit facility as part of its efforts to boost sales.

Edgars Zimbabwe is offering interest-free credit with three months to pay, but customers are required to deposit at least 25 per cent on each purchase.

Post published in: Economy

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