Press Corporation Limited has sold one of its franchise Peoples Trading Center (PTC) to Tafika Holdings Limited which is owned by a South African-based Malawian Arson Malola, MIJ Online has learnt.
The move comes as for years the franchise has been struggling to raise capital for smooth running of its operations, which led to closure of many of its stores.
Chief Executive Officer for Peoples-Ferdinand Mchacha has confirmed in an interview with MIJ Online-that Tafika Holdings Limited has acquired 100% of the shares in PTC from Press Corporation Limited.
According to Mchacha, the move is aimed at recapitalizing PTC and restore it to its former glory as well as expand its operation in the country and beyond the region.
“As a company we have been struggling with capital inadequacy for the past 8 years due to some serious capital losses that came about due to a number of factors including stock losses, shrinkage among others.
Over the years there were so many of initiatives happening for partial recapitalization but we felt time had come that we needed to make a big capital injection through this recapitalization process”. Said Mchacha.
Meanwhile, PTC officials have dispelled fears of retrenchment and job losses for existing workers, saying the company will be expanding from 20 existing stores to about 200 in the next five years hence creating more job opportunities.
“We are looking at expanding, so we are actually looking at employing more people and not reducing the existing number. Currently we got only about 20 Stores in Blantyre, Lilongwe, and Zomba, we are looking at opening stores in Mzuzu and all over the country. This whole recapitalization was done to save people’s jobs.” Explained Mchacha
Mchacha has since disclosed that Peoples Trading Center will not be rebranding to change its name and will maintain its other franchise of SPAR as well as Food Lovers stores.
PTC will be carrying out its recapitalization process for Five years starting with restocking the stores, capacity building for its stuff as well as upgrading some of its stores apart from opening new stores across the country and within the region.