By Matṧeliso Phulane
Embattled Enrich Store is confident that the company’s properties will not be auctioned off today following a High Court order this week.
According to a court order issued on Tuesday this week, Enrich Store’s movable property is to be sold by public auction to the highest bidder at Enrich Fitness, Ha-Tsolo, Usave Building in the district of Maseru today at 09:00 am. The auction will be conducted by the Deputy Sheriff of the High Court.
The order was secured by local company PEG (Pty) Ltd – a creditor that Enrich owes an undisclosed amount of money.
However, Enrich board of directors chairman ThatoDamane is upbeat that the company will avert the auction and salvage its property.
His confidence emanates from a commitment by investment promotion agency, the Lesotho National Development Corporation, to bail out the store which has since closed.
“I am confident because (acting) LNDC chief executive officer Molise Ramaili strongly acknowledged to help Enrich, even on nation TV. So why can I not trust a person with such high moral standards?
“Mine is just to trust him as he said. That is why I am saying tomorrow is the 15th, so let’s wait and see. It is not his wish to see this company facing such processes under his watch, especially because the initiative (establishing Enrich) itself is what he liked,” Damane told theReporter yesterday.
Damane recently confirmed that LNDC has given Enrich an M25 million bailout, and will disburse M15m in the first phase while the remaining M10 million will come later.
Asked whether the funds had already been disbursed to Enrich, he said: “Not yet, but the money is coming. Like they mentioned on the letter issued recently regarding Enrich, they (LNDC) are finalising the due diligence process and tomorrow is the last day. That says communication will be issued out concerning Enrich. Of course, it is promising indeed.”
Meanwhile, LNDC has requested another of Enrich’s creditors, Moosa Group of Companies, to place on hold its demand for dues owed by the store.
In the letter dated November 29 2023, LNDC says as the main implementing agency of the government of Lesotho, it is mandated to initiate, promote and facilitate trade and investment in Lesotho.
In its current strategy the corporation has given prominence to supporting the local private sector with access markets, access finance and access to partnership with foreign direct investment.
“In execution of its strategy, the Corporation is conducting due diligence of Enrich Holdings, that has been experiencing a downward spiral in business performance. It has come to the attention of the Corporation that Enrich Store has a summary of judgement for arrears of M 588,000.00 of rent due to Moosa Group of Companies.
“The LNDC herein pleads with Moosa Group of Companies to place on hold, demand on dues owed while LNDC finalises exploration of suitable support to render to Enrich. A decision on this possible support will be reached latest by December, 15 2023,” LNDC wrote.
Commenting on the matter, Damane yesterday lauded Moosa Group of Companies for being more patient and accommodating.
“Till now, the support we got from Moosa is overwhelming. They are not interested in seeing our company fall to the ground; rather their patience with us shows that they are willing to give us time to sort ourselves out.
“They accepted the letter from LNDC and told us they will honour it,” he concluded. However, efforts to get comment yesterday from Moosa Group of Companies to confirm this were unsuccessful as their telephone rang unanswered.
Enrich Stores, the first Basotho chain store founded in 2019, will resume business after being shut down due to a myriad of challenges including bad financial behaviours and lack of good leadership.
Its mission was to generate sustainable economic development, create permanent jobs, and support local businesses and produce. It also sought to exceed the expectations of customers, clients and shareholders by excelling.
Bad financial management from both the store and the fitness facility set up in Ha Thetsane led to Enrich’s closure last month. The store was no longer able to pay rent which went on to balloon to about M1 million over time.
