Connect with us

Business

Payless to pay more!

Published

on

Payless to pay more!

Choppies drag Payless owner to court over P121 million debt

Choppies, through its distribution centre, has dragged Payless supermarket’s majority shareholder, Saleem Malique to court over unpaid debts.

Choppies Distribution Centre (CDC) had loaned an amount of P121 048 424.78 to Payless supermarkets. Indeed, in total, the doomed enterprise owes suppliers P1.3 billion.

It has now been deemed through the Companies Act that Payless is unable to pay the money owed to CDC.

In a recently released circular to its shareholders, Choppies confirmed it has been unable to recover the P121 million debt.

On the 13th of March this year, the High Court granted a provisional order for the winding up of Payless supermarkets and the appointment of a provisional liquidator.

A final order of the liquidation is expected to be made on 27 April 2020.

During the liquidation process, the liquidator will, as directed by the High Court, evaluate the prospects of selling the business as a whole or individually.

As a secured creditor, Choppies has told shareholders that CDC may, if appropriate, support the provisional liquidator in operating the business in order to enable sale of the business or businesses.

Now Choppies has taken Malique, who holds a 90 percent shareholding in Payless Supermarkets, to court after he failed to execute a deed of suretyship which he guaranteed as a surety, guarantor and co-principal debtor.

It is said Malique had committed to take responsibility for Payless supermarkets obligations to CDC, ceding and pledging his Payless shares.

After being issued with demand by CDC for payment of the outstanding P121 million, Malique reportedly failed to effect payment of such amount.

As a result, Choppies through its distribution centre, approached the courts of laws seeking judgment against Malique for the full payment of the debt as well as interest.

The company also wants Malique’s Payless shares to be attached. He was served with summons on 3 March.

Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

De Beers cuts production as Covid-19 effects set in

Published

on

In response to the Covid-19 pandemic, diamond mining conglomerate De Beers – has revised its global production guidance.

The company, which operates Debswana Mines with Botswana government in a 50/50 joint venture, revealed this week that it has cut its global production guidance by 7 million carats to reflect demand and support long-term value.

When updating the media last Thursday afternoon, De Beers – Global Sightholder Sales Executive Vice President, Paul Rowley described the pandemic as unprecedented and nothing like what the world has ever faced.

Previously, production guidance was set between 32-34 million carats for the year, but non due to the pandemic which has affected business across sectors.

Rowley told the media that the diamond mining giant is also refocusing and repurposing marketing plans to reflect a changing situation.

Furthermore, he said the group is also working with partners in government to see how to generate revenue when international customers are unable to travel adding that creating viewing centres in other countries is another option being considered as a temporary measure.

Despite the current challenges facing the diamond industry, and all other industries, Rowley said De Beers continues to make major investments across the diamond value chain to ensure the industry’s continued success during these unprecedented times.

De Beers, according to Rowley, is making investments in production capacity expansion, rough diamond distribution efficiency and downstream consumer marketing campaigns.

Rowley told journalists that Covid-19 has impacted heavily on all the three streams, being downstream, midstream and upstream.

On the downstream side, he noted that the pandemic has had a direct impact of De Beers Jewellers retail outlets due to store closures and consumer demand impact.

In the midstream, he says the pandemic has negatively affected the rough diamond sales as the third sight was cancelled due to logistical challenges as countries went on a lockdown.

The fourth sight was only attended by local beneficiation Sightholders as international buyers were unable to travel once again.

In the upstream, Rowley said operations across the globe were impacted and the group has had to implement new requirements and procedures in the workplace to keep the workers safe.

Continue Reading

Business

Letlole La Rona suspends CEO

Published

on

Letlole La Rona (LLR), a property company listed on the Botswana Stock Limited (BSEL), on Tuesday moved to suspend its Chief Executive Officer, Chikuni Shenjere-Mutiswa.

His suspension, according to a notice to shareholders, follows preliminary findings arising from an investigation into issues relating to the company’s Long-term Incentive Plan.

Mutiswa who was appointed LLR CEO in June 2018, is said to have been suspended with full benefits pending the outcome of the full investigations.

Commenting on the latest developments, LLR Board Chairperson, Boitumelo Mogopa noted good governance remains sacrosanct to the board and all staff of the company.

“The preliminary findings of the possible misconduct arising from the investigations relate to the circumstances around the company’s Long-term Incentive Plan during or around March this year and possible acts or omissions by an individual in a unique position of power,” said Mogopa.

Mogopa said this by no means reflects the integrity of the board, financial performance and company portfolio.

“For us, it remains business as usual as the due process takes its course,” said Mogopa.

Meanwhile, the board has in the interim appointed Botshelo Mokotedi to hold the fort on an acting basis while investigations continue.

Mokotedi is seconded from Botswana Development Corporation (BDC) – a major shareholder in LLR – where he is the Head of Risk.

He is described as a forward-thinking, highly motivated and results-oriented individual with more than a decade experience in the financial services sector across a variety of senior roles, including Business Development, Credit Analysis as well as Portfolio and Risk Management.

Continue Reading

Sponsored ads

ABSA COVID-19 Fund
Advertisement
Advertisement


Trending