Three – month suspension for Truworths

The Zimbabwe Stock Exchange Limited (ZSE) has suspended clothing retailer, Truworths from trading for a period of three months.

According to ZSE chief executive officer, Justin Bgoni, the suspension will give the clothing retailer ample time to address the going concerns aspects of the business.

The company has bemoaned operational challenges emanating from the obtaining harsh economic environment characterised by foreign currency shortages, inflationary pressures, exchange rate volatility and waning disposable incomes.

Indications are that Truworths approached the ZSE for a voluntary suspension.

“The ZSE hereby notifies the investing public of the voluntary suspension from trading in shares of Truworths Limited with effect from 7 March 2024.

The suspension is for a period of three months to provide Truworths with the opportunity to address the going concern aspects of the business and ensure compliance with ZSE. Listing requirements regarding the publication of Audited Financial Statements for the period ending 9th July 2023,” said Bgoni.

According to Bgoni, this will give Truworths time to also comply with the regulatory obligations stipulated by the ZSE.

“At Truworths’s request, the ZSE sought and was granted permission to suspend trading in its shares by the Securities and Exchange Commission of Zimbabwe pursuant to the provisions of Section 64 (1) (a) (ii) of the Securities and Exchange Act [Chapter 24:25].

“In terms of Section 9 of the ZSE Listings Requirements, the Company should continue to discharge its obligations to the shareholders and the Zimbabwe Stock Exchange during the suspension,” said Bgoni.

The ZSE has requested Truworths to provide a roadmap on how they aim to resolve the challenges they currently face and the clothing retailer will also issue a public notice addressing this point in due course.

“Investors will not be able to buy or sell Truworths shares during the suspension period,” said Bgoni.-ebusinessweekly