Choppies Owed P124M By Payless

Choppies has been running Payless since 2014 doing all the procurement, advertising as well as the entire Human  Resources recruitment.  Choppies as lender and Payless as a borrower entered into a loan agreement in terms of which Choppies would avail credit to Payless in respect of stock purchased from Choppies Distribution Centre. Choppies was also to avail funding from time to time to enable Payless to pay its trade creditors and service providers and purchase stock on behalf of Choppies.  Presenting Choppies Enterprises financials for the year ended  June 30, 2020, CEO Ramachandran Ottopathu said in June the Company was instructed by the High Court of Botswana to release the shares. 

“The company has applied for a stay of execution against the court ruling. The company still retains the pledge on the shares for all the outstanding receivables from Fours Group,” he said.  The Payless Supermarket receivable is fully provided for.