South African-based retailer Shoprite Holdings is the latest to declare a redundancy plan as the giant retailer looks to close its Karen Waterfront barely 8 months after the outlet opened.
The retailer has declared the intention to close the outlet as it is no longer viable. Shoprite management says all the 104 employees at the branch will be declared redundant.
“It is contemplated that the intended date of termination on account of redundancy will be 20 May 2020… It should be noted that the branch will cease trading operations on a sooner date but this will not prejudice you as you will continue to tender your services at same branch until termination date,” a letter addressed to the employees states.
“It is envisaged that the extent of redundancy will impact all employees at the said branch (Waterfront). There are currently 104 persons employed at the branch of which 74 are members of KUCFAW,” another letter letter addressed to the Kenya Union of Commercial Food Allied Workers (KUCFAW) states.
The retail giant closed the financial year 2019 with a Sh79 billion debt including Sh571 million from Stanbic Bank Kenya that was meant for expansion.
The retailer which also has operations in Tanzania and Uganda employs at least 500 people in all it’s branches in the country.
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