The challenging economic environment has claimed another casualty, as the Shareholders of OneStep Trading (Pty) Ltd, operators of the Food Lovers Market franchise at Gateway Mall in Lilongwe, have been forced to make the difficult decision to close the business due to severe economic hardship.
Citing the prevailing and challenging trading environment, including severe forex shortages and diminishing consumer disposable income, the company has become unsustainable, incurring significant financial losses.
“Despite management’s best efforts to navigate these challenges, the business has become unsustainable, incurring significant financial losses at an unsustainable rate. As a result, the Shareholders have passed a resolution to wind down operations in an orderly manner,” reads part of a letter to suppliers.
The Directors and management have assured stakeholders that they will prioritize protecting the interests of valued suppliers and stakeholders during the closure process. The company will engage with suppliers individually to discuss outstanding obligations and a mutually feasible way forward.
The closure is expected to have an impact on local businesses, and the company has expressed its regret for this outcome.
Malawi is currently grappling with a severe economic crisis, characterized by a debilitating combination of forex shortages, rising inflation, and dwindling consumer purchasing power. This perfect storm has sent shockwaves throughout the business community, with the prices of various commodities soaring to unprecedented heights.
The situation has left many businesses, particularly small and medium-sized enterprises, struggling to stay afloat as they face unprecedented challenges in accessing essential raw materials, managing cash flows, and maintaining profitability.
As a result, the business community is reeling, with many entrepreneurs and investors scrambling to adapt to the harsh new economic reality.
