South African-based retailer Shoprite Holdings has announced plans to lay off at least 104 employees in the coming days, this is after the retailer announced that it is permanently closing it’s Muguku family-owned Karen Waterfront. Branch.
In a letter seen by Kenyanbulletin addressed to the secretary-general at the Kenya Union of Commercial Food Allied Workers (KUCFAW) the retailer says that the intended date of these employees’ termination on account of redundancy will be on the 20th May 2020.
“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,” the letter dated 14th April, 2020 reads in part.
“It should be noted that the branch will cease trading operations on a sooner date (before May 20th) but this will not prejudice you as you will continue to tender your services at same branch until termination date,” another letter addressed to an employee reads
This is barely a year after the retailer borrowed about Sh571 million from Stanbic Bank Kenya as it continued an expansion drive in the country. The retailer opened the outlet on September 26, 2019..
“A lease agreement has been concluded with The Karen Waterfront and the Group will follow up on other opportunities as they become available. Shoprite sees a lot of potential in the country and is excited about the prospect of expanding its footprint over time,” the retailer had said in a statement in July last year when it acquired the lease for the property.
