By Melody Korongwe
Harare, Zimbabwe – The once-vibrant aisles of Truworths, a staple in Zimbabwe’s formal retail landscape, now stand as a stark testament to the ongoing economic devastation that has gripped the nation.
In a chilling development that sent ripples through the financial sector, Truworths Limited and its subsidiaries – Topics Stores and Bravette Manufacturing Company – have become the latest high-profile casualties of the Zimbabwe Gold (ZiG) currency regime.
Their recent voluntary delisting from the Zimbabwe Stock Exchange (ZSE) and entry into corporate rescue paint a grim picture of a formal economy teetering on the brink.
The announcement from the ZSE this week confirmed what many had feared: Truworths, after a protracted battle for survival, had finally succumbed.
The company’s journey into corporate rescue began almost a year ago, on August 7, 2024, under the provisions of Section 122 of the Insolvency Act [Chapter 6:07].
This move, essentially Zimbabwe’s equivalent of bankruptcy protection, was meant to offer a lifeline, a chance to restructure and find a path to viability.
Yet, despite the legal moratorium on creditor actions and a corporate rescue plan adopted on November 20, 2024, the harsh economic realities proved insurmountable.
The final act in this corporate drama unfolded on February 25, 2025, when a shareholders’ meeting approved the transfer of ownership to Valfin Investments for a symbolic US$1.
This rock-bottom price, coupled with the immediate delisting from the ZSE and a complete overhaul of the board, effectively marked the end of an era for Truworths as a publicly traded entity.
The Securities and Exchange Commission of Zimbabwe (SECZim) has given its approval, meaning Truworths shares are now essentially a relic for investors.
Despite the Reserve Bank of Zimbabwe’s assurances of stability, the ZiG has struggled to gain public confidence, leading to rampant price volatility, a relentless erosion of real incomes, and a mass exodus of consumers towards the informal markets.
Formal retailers like Truworths are caught in an impossible bind.
They are bound by official exchange rates and a labyrinth of regulatory constraints, forcing them to compete with informal traders who operate outside these strictures, offering goods at significantly lower prices and often dealing exclusively in the more stable US Dollar.
This uneven playing field has created a pricing disadvantage that has proved fatal for many.
Truworths now joins a growing, unfortunate list of businesses – particularly in the retail, clothing, and manufacturing sectors – that have either dramatically scaled down operations or completely shut their doors.
Industry analysts are issuing dire warnings: without urgent and meaningful reforms to restore confidence in the national currency, the ZiG threatens to dismantle what little remains of Zimbabwe’s formal economic infrastructure.
The demise of Truworths is more than just a corporate failure; it’s a stark reminder of the fragile state of Zimbabwe’s economy and the urgent need for a stable, predictable monetary environment.
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