Troubled retailer Choppies will not be able to access its accounts in Kenya, following a ruling by the High Court that upheld locking of the accounts by the Kenya Revenue Authority (KRA).
In a case filed by the Botswana-based retailer, High Court Judge David Majanja refused to give an order to unfreeze the accounts, which have been frozen by KRA following a Ksh173,388,416 tax dispute.
The court was informed that Choppies had started disposing its assets and had closed several branches in preparation for an exit from the Kenyan market, which would see the tax man lose the aforementioned amount in uncollected taxes.
Choppies is now required to provide security for taxes payable to KRA. Further, the court gave Choppies and KRA fourteen (14) days to explore an amicable settlement of the tax dispute.
Read: Choppies Puts Up Property For Sale As It Bows Out Of Kenyan Market
Last month, Choppies announced to its shareholders that it was disposing some of its properties.
In a circular to shareholders, the cash strapped retailer said that the move will enable it settle the current liabilities.
“Operations have since been scaled down to only two stores and negotiations are ongoing to sell equipment to local operators and/or existing landlords to clear some of the outstanding liabilities,” said Choppies in a circular to shareholders.
The Retailer had over 15 outlets that it acquired from Ukwala Supermarket in 2015.
In the recent times, Choppies has laid off a total of 583 workers as it struggles with strained cash flows.
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