200 staffers at the Choppies Supermarket have been sacked following last week’s announcement that the troubled retailer is set to exit the Kenyan market.
The 200 have already been handed termination letters and are serving a one month notice, awaiting to leave in September. However, during the notice period, the workers will not be required to report to work, but will be paid the month’s dues plus one month salary in lieu.
“This termination is due to the reduced business which has been running for several months which you are aware of, and the company is unable to sustain the current wage bill, noting that the business has gone down and is taking time for full recovery. During the notice period, you will not be required to report to work, but your September salary will be paid in full up to 30/09/2019 plus one-month notice. You will also be issued with a certificate of service,” read the letter in part.
Read: Choppies Supermarket Announces Plans To Exit Kenyan Market
However, it is feared that the staffers may not be paid well after exit, since some have allowance arrears that were not addressed in the termination letters.
“Once you clear and leave, you are no longer an employee, and the company may delay paying the dues or even give less pay since we have not discussed how much to expect,” said an affected employee who sought anonymity, as quoted by the Standard.
In an extraordinary general meeting (EGM) with its shareholders on Wednesday last week, the troubled retailer revealed that it had listed its Kenyan assets for sale and has also classified its 12 stores as distressed.
“Zambia has a steady performance in a volatile economy, Kenya’s distressed business has been identified for disposal. Tanzania and Mozambique are distressed while Namibia is performing as expected. In Botswana there is steady income flow under difficult trading circumstances, South Africa North West business is distressed and identified for disposal,” Wilfred Mpai, Choppies director told shareholders.
Read: Empty Shelves Depict A Bleak Future For Choppies Supermarket, 3 Years After Take Off
The retailer has already shut down two outlets, Kiambu and Bungoma.
The retailer, which took over from cash strapped Ukwala Supermarket, has been unable to maintain the tempo in the Kenyan retail industry, which has seen its cash flow dwindle.
Currently, the retailer headquartered in Botswana is surviving on reduced customer traffic, who are greeted by empty shelves and ‘hopeless’ staffers, reported to have gone for months without pay.
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