Truworths’ debtors pay up

Truworths Holdings Limited recovered a significant chunk of debts from customers and has recorded an increase in its customer base.

The company’s Chief Executive, Temba Ndebele, told journalists and analysts that 88 percent of $79 631 debt from credit customers and 81 percent of $26 900 debt from Topics had been recovered.

“The customer base has gone up by 36,7 percent in the first quarter of the year,” said Ndebele.

For the year ending July 31, 2011, the group had 68 024 accounts. Ndebele said credit terms had been relaxed, with an extra month to pay, a development that is expected to improve sales and make instalments affordable.

“We are offering new credit terms. We have moved from six months to seven months to allow customers to participate,” he said

The scheme is only applicable to clients who purchase items in November and December.

“We have seen an upturn in sales, but it’s still too early to establish a sustainable pattern. We believe December will be a good month for us,” Ndebele said.

He said inefficiencies within the group had led to increased creditors in December and January of 14 percent compared to overall year growth of 48 percent. As a result, the group was not able to use its resources to finance creditors due to lack of merchandising.

As at June, Truworths had 338 customers who had not made payment of $79 631 and Topics had 77 customers owing $26 900.

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