Truworths to submit roadmap out of operational challenges

ZSE Holdings group chief executive officer Mr Justin Bgoni said the partnership with TNAM recognises that attracting investors to the new market will depend not only on creating a listing platform, but also on ensuring a pipeline of well-governed, investment-ready companies capable of meeting public market standards.

Senior Business Writer

Truworths Limited, which is on a voluntary three-month trading suspension from the Zimbabwe Stock Exchange (ZSE), has been requested to submit a roadmap on how it seeks to navigate the operations challenges it faces.

The clothing outlets’ shares stopped trading effective March 7.

That was after it applied for voluntary suspension of its securities from trading on the ZSE to attend to some compliance-related matters.

In a notice to shareholders, ZSE chief executive officer, Mr Justin Bgoni said the suspension is for three months to provide Truworths with the opportunity to address the going concern aspects of the business and ensure compliance ,with ZSE Listing requirements regarding the publication of Audited Financial Statements for the period ending July 9, 2023.

“This temporary suspension aims to give Truworths the necessary time to rectify any concerns and meet the regulatory obligations stipulated by the ZSE,” he said.

“At Truworths’s request, the ZSE sought and was granted permission to suspend trading in its shares by the Securities and Exchange Commission of Zimbabwe pursuant to the provisions of Section 64 (1) (a) (ii) of the Securities and Exchange Act [Chapter 24:25].

“In terms of Section 9 of the ZSE Listings Requirements, the Company should continue to discharge its obligations to the Shareholders and the Zimbabwe Stock Exchange during the suspension. “

Mr Bgoni noted that the ZSE has requested Truworths to provide a roadmap on how they aim to resolve the challenges they currently face.

“Truworths Limited will issue a public notice addressing this point in due course. Investors will not be able to buy or sell Truworths shares during the suspension period.”

Recently, the firm said sales and profitability continue to be adversely affected by the importation of sub-standard clothing and footwear by the informal sector that does not pay tax.

Truworths Limited is a company incorporated and domiciled in Zimbabwe, whose shares are publicly traded. Its core business is the retailing of clothing, footwear, textiles and accessories.