Shoprite: Court Stops Firm From Leaving Nigeria |The Source

Shoprite Checkers (PTY), owners of popular Shoprite has been stopped from transferring its asset to new owner in case of any buy out.

The retail store, last month gave an indication to dispose of its Nigeria’s assets to would be buyers.

But a Federal High Court in Lagos has stopped the company from transferring its asset mover a $10 million judgment debt.

Justice Mohammed Liman made the order in favour of a Nigerian company, A.I.C. Limited, which in 2018, secured a $10 million judgment against Shoprite in a breach of contract lawsuit.

Recall that Justice Lateef Lawal –Akapo of the Lagos High Court had earlier delivered the $10 million judgment against Shoprite, which the retail company later appealed, and the case is now before the Supreme Court for final judgment.

AIC had in 2012 accused Shoprite of abandoning the agreement both parties had to jointly establish the retail business. The company later went to court to enforce its right when promoters of the retail store set up the business in 2015.

Justice Liman has now granted an order stopping Shoprite “from transferring, assigning, charging, disposing of its trademark, franchise and intellectual property in a manner that will alter, dissipate or remove these non-cash assets and other assets, including but not limited to trade receivables, trade payables, payment for purchase of merchandise, from within the jurisdiction of this honourable court.”

The judge also directed Shoprite “to disclose its audited financial statements for the years ending 2018 and 2019 to enable the judgment creditor/applicant determine the judgment debtor’s/respondent’s funds in its custody in order to preserve same in satisfaction of the judgment of the Court of Appeal in Appeal No: CA/L/288/2018.”