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Sunday, 21 July 2019

"Omar Effendi" faces bankruptcy petition for an unpaid bill of $17,249

A bankruptcy petition has been filed against Egypt's most famous department stores, Omar Effendi, for unpaid furniture bills

Salma El-Wardani , Wednesday 15 Dec 2010
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A bankruptcy petition has been filed with the courts against iconic store chain Omar Effendi for its inability to pay a LE100,000 ($17,249) bill, rendered for an order made with a small furniture company, a source said today.

On 26 December, the economic court in Cairo will hold a hearing to set a date for the trial.

The petition was filed by attorney Mohamed El-Fakharany, on behalf of Walid El-Dosouky, owner of the furniture company, who is suing the company for unpaid merchandise bills.

Ahram Online could not reach any of the company's executive for comment.

Last week, workers in the stores led a successful strike, urging the administration to pay their salaries.

The bankruptcy petition is the third crisis the company has faced in less than one month.

Two weeks earlier, the acquisition of Omar Effendi department stores was revealed to be at stake after the previous owner was accused of not paying back taxes. The Tax Authority seized control of the company's bank accounts, Wednesday, in order to collect some LE98 million ($17.5 million) in unpaid taxes, owed since 2007, when the store was privatized.

The Arab Investment Development company (AID), is set to buy an 85 per cent stake in the stores. But AID chairman, Mohamed Metwalli, said that the company will cancel the deal if the previous owner, Anwal, does not pay its back taxes. 

Omar Effendi was a public 'underdog' chain until 2006, when it was sold to the Saudi company, Anwal.  The company has only seen losses since and is still heavily in debt.

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