Nyashadzashe Ndoro
The Zimbabwe Stock Exchange announced on Thursday that trading of Truworths Limited shares will be halted effective immediately.
Truworths reportedly requested a voluntary suspension of its shares from trading on the ZSE to address “compliance related matters”. The ZSE is currently considering the application.
Investors can expect further updates from the ZSE regarding the situation “in the next few days”. The exact nature of the compliance issues and the potential timeframe for resuming trading remain unclear.
But the group, in its latest financial update for the year ended July 2023, said its sales units had been significantly hurt by unfair competition from the growing trade of second-hand clothes as well as counterfeit clothing brands flooding the Zimbabwean markets.
“Units sold were negatively affected by informalisation of the economy which has resulted in cheap and fake imports selling at below local and international manufacturing costs. The business could not viable compete against these imports,” the company said.
Truworths recently closed a number of its shops across the country citing that high unemployment levels and low disposable incomes due to inflation had a negative impact on volumes sold, with customers resorting to buying products in the unregulated informal market at prices, which the business could not compete against.
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