SOUTH African retailer Truworths International Limited (TRUJ.J) is negotiating fresh funding for Office, its British footwear business as part of measures to secure the unit’s viability, the South African retailer said on Wednesday.
The group as a whole, which sells clothes, jewellery and homeware, as well as shoes, has been hit by the impact of the COVID-19 pandemic and store closures because of lockdowns.
“The economic crisis caused by the severe negative impact of the ongoing COVID-19 pandemic has resulted in diminished revenue, reduced collections and an increase in the doubtful debt provision in respect of the Truworths Africa debtors’ book,” the group said in a statement.
Doubtful debts are those which a business or individual is unlikely to be able to collect from shoppers who buy on credit.
To secure Office’s “long-term viability,” the group said it was negotiating funds as well as implementing redundancies and renegotiating
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