₦airaland Forum

This explains the empty shelf at ShopRite shops before they finally shut down 👎

Before they finally closed their retail shops scattered all over the country, the Nigerian investors led by Tayo Amusan, who acquired ShopRite from its South African owners, took a ₦2.4 billion loan from Moniepoint's microfinance.

The loan was meant to be a working capital facility.

Apparently, the loan has stopped performing as ShopRite is no longer in business at the moment.

To recover their money, Moniepoint went to
court, two weeks ago seeking an order restraining every bank from releasing or dealing with funds held by Retail Supermarkets Limited, the owners of the ShopRite franchise in Nigeria, so it could recover the ₦2.4 billion working capital facility owed to it.

Moniepoint is learning in real time what older banks faced with Nigerian corporates who don’t like paying back their debt.

Onigbese is a culture and who we are as a people.

It is a deeply ingrained cultural practice that reflects the character of our people

Shoprite, under the Nigerian investors, was run so badly and mismanaged that suppliers were owed money months after supplying their goods.

This factor made local suppliers stop supplying their goods.

Thst was the main reason why we saw empty shelf at ShopRite shops before they finally closed.

Little did we know that the Nigerian investors also owed Moniepoint and had refused to pay.

This is not how to run a legacy business.

Source

Shoprite, under the Nigerian investors, was run so badly and mismanaged that suppliers were owed money months after supplying their goods.

Lol.. Nigerian market is unique.

Tinupoo bad economic policy is real...





Beware!

Chai, running business is not for the faint hearted, especially in Nigeria.

I do tell people, the fact that you see big businesses with crowd does not mean they are doing well/making profit.

How can a status of Shoprite borrow money from a Micro Finance bank with so high interest rate.

Wawu
A 2.4 billions from one business entity

That's crazy. With their expensive goods. They should sell off some of their buildings and pay. ShopRite in Jabi, Abuja is worth more than 2.4 billion.

Ok. Ok ok ok .May God help us

CodeTemplarr:
Lol.. Nigerian market is unique.

9ja don happen to Shoprite

Dem go still show up later

That’s bad
Bad policies ruined them I guess

Man this is quite a problem in Nigeria and it's reputation.

Meanwhile I build websites and mobile apps for a living.

Interesting... They should sell it to H-Medix

Tomorrow same Nigerians will complain if a company brings only foreigners to manage it's affairs. We only complain when not given opportunity to $+£@l

2.4 Billie.

That's some bread!

I pray Moniepoint recover their money.

the grabber, snatcher and run away criminal is running the country now.shoprite should pay tax tomorrow self for owning monipoint

Na so dem be. Audio billionaires everywhere. It wasn’t surprising though given the fake products that found their way into Shoprite shelves the moment the South Africans exited.

nlfpmod:
This explains the empty shelf at ShopRite shops before they finally shut down 👎




Source

it is not so much that the investors refused to pay as it is that they were struggling to make money
shoprites biggest selling point for people like me was their lowest costs for items like detergent, soap toothpaste, indomie, soft drinks etc

after they were taken over, their prices slowly and surely rose until they outpaced the priciest supermarkets

the investors are between a rock an a hard place - raise prices so they can service their loans, or leave prices low so they can retain customers

Something is telling me to deal with moniepoint with thousands not millions. I'm moving out some funds to my GTBank.

From what is publicly known, Shoprite’s exit has more to do with poor management decisions than Nigeria’s economy. Many new and smaller retail chains are still opening and doing well in the same environment. It’s unfortunate to see such a large company mismanaged to the point of shutting down stores and leaving debts running into billions of naira unpaid.

Suppliers were owed money months after supplying their goods.

Nairalanders business fellas made this complain here🤷🏿 few years ago.

ShopRite Jabi is worth 2.4b or above that. He should sell and pay monie point

Monie point get money like that?

When a Nigerian bought it, I couldn’t help but chuckle, already seeing how it would end. They only chase loans and end up ruining the company. That’s why I always hail Dangote and the others—imagine if they hadn’t been prudent or had chosen to defraud their firms; Nigeria would be in a far worse state. Picture them colluding with the regulatory rogues that have held the oil‑and‑gas sector hostage—it would have been disastrous for Nigeria.

sleek214:
That's crazy. With their expensive goods. They should sell off some of their buildings and pay. ShopRite in Jabi, Abuja is worth more than 2.4 billion.

Those malls are rented. Mama P owns Jabi lake Mall 📌💯

datola:
Chai, running business is not for the faint hearted, especially in Nigeria.

I do tell people, the fact that you see big businesses with crowd does not mean they are doing well.

True...most Nigerians make this mistake of confusing sales with profit!

There are so many businesses like this littered all over Nigeria who are at this precipice of almost shutting their doors and they are out there on social media putting up a façade!

christejames:
Tinupoo bad economic policy is real...





Beware!

Ebeano Supermarket is not complaining

And some ijiats are complaining that Dangote refinery is ran mainly by Indians. Put Nigerians to manage Dangote refinery and it will collapse in no time

That’s small money for such a brand. Sha, when you have a Nigerian at the helm of affairs, such is bound to happen.

sleek214:
That's crazy. With their expensive goods. They should sell off some of their buildings and pay. ShopRite in Jabi, Abuja is worth more than 2.4 billion.

Those spaces in a shopping mall were rented out to businesses including ShopRite who pay yearly lease on it. The malls in the east for instance are owned by the government who then lease it out to these businesses like ShopRite to operate. So the bank cannot take over a building that ShopRite doesn't own to start with.

PulaPower:
Monie point get money like that?

Come on now...just 2.4Billion NAIRA not Dollars o

3Si69:
Something is telling me to deal with moniepoint with thousands not millions. I'm moving out some funds to my GTBank.

Time to give moniepoint the eye. . How can they lend out so much money ? If na me I will only give anyone 100k for loan. And that is only because I don't want anyone to say I don't loan money. Moniepoint are a bunch of Novices