Crucial shareholder meeting for Truworths

Nqobile Bhebhe
[email protected]

Truworths, a listed firm currently in corporate rescue, along with its subsidiaries, Topic Stores and Bravette Manufacturing Company, is scheduled to hold an important shareholder meeting on 25 February in Harare.

The clothing retailer’s shares were halted from trading on March 7 2024, after the company applied for voluntary suspension.

A corporate rescue refers to a process of saving a financially distressed company from bankruptcy with the goal to restructure the company’s finances and operations, allowing it to continue as a going concern.

Truworths has been hit by inflationary pressures and tight liquidity in the economy, which resulted in depressed demand due to waning consumer spending.

The main agenda of the meeting will be to effect section 10 of the corporate rescue plan, more specifically the Valfin Investments taking up Shareholding for US$1 (One United States Dollar) and delisting from the Zimbabwe Stock Exchange.

Resignation of the current board, and appointment of a new board is also on the agenda.

Added to that, an update on the approval of Valfin as investor into Truworths and merging the two businesses will come under scrutiny.

Truworths is a retailer of fashion apparel and related merchandise that offers perfumes, bags, shoes, homeware products, clothing and footwear for ladies, men, teenagers and kids.