Pepkor to exit Zimbabwe in wake of R70m after-tax loss | Fin24

Pepkor to exit Zimbabwe in wake of R70m after-tax loss

Nov 26 2019 10:15
Crecey Kuyedzwa

The economic crisis bedevilling Zimbabwe has caused South African retailer Pepkor to close shop. 

Pepkor, which trades under the Power Sales brand in Zimbabwe, said a challenging economic environment had resulted in the company making a R70m after-tax loss.  On Monday it published its audited results for the year ended September 30, 2019.  

"The decision to exit Zimbabwe was based on the continued adverse macroeconomic conditions affecting trading and weakening currency," Pepkor said.  "Management is in final negotiations with the relevant parties to conclude the terms of sale."

A fall in the value of the Zimbabwean dollar against the US dollar has forced foreign-owned operations such as Old Mutual and PPC, among others, to record currency exchange losses. 

Pepkor was previously known as Steinhoff Africa Retail. It changed its name to Pepkor in August 2018 to distance its brand from Steinhoff International, which has been under a cloud since December 2017 when its CEO Markus Jooste abruptly resigned amid an accounting scandal. 

pepkor  |  zimbabwe  |  companies  |  retail


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