Choppies has informed shareholders that it is currently in talks to sell its Zimbabwe subsidiary. Choppies plans to sell the subsidiary, which has 30 stores in Zimbabwe, for cash.
The deal is still in its early stages and will be subject to approval by the Zimbabwean Competition and Tariff Commission.
"In Zimbabwe, over the last two years, there has been a significant shift to the informal retail sector, leaving the formal retail sector to battle a reduction of up to 30% in footfall and having to compete with the informal sector," Choppies told shareholders.
Choppies further says that although it has already made significant investment into the Zimbabwe subsidiary, the entity still needed more lifelines and the company was not prepared to pump in even more capital.
In its financial results released in June, Choppies recorded a profit before tax of P207 million.