Negotiations for the sale of stake in iconic Egyptian department store Omar Effendi to an Egyptian investor remain ongoing, Omar Effendi Acting General Manager Ahmed Nasser said this week, declining to reveal who was mediating the talks. Majority stakes in the company are currently held by a Saudi investor.
“Negotiations could continue until the end of this week,” Nasser added, denying any knowledge of a reported offer by the Egyptian government to buy the struggling company.
Trade unionist Mohamed Wahaballah, meanwhile, quoted Prime Minister Ahmed Nazif as saying that the government "would not act as a clothing merchant,” in reference to whether the government entertained hopes of buying the department store chain.
“As for the workers, they don't care who buys the store,” said Wahaballah. “They just want to receive their bonuses and incentives in full.”
He asserted that the union would work to ensure that provisions included in the original sales contract to the Saudi owner were implemented–especially clauses 11 and 12, pertaining to workers' rights.
“Should negotiations fail, the Saudi owner will be forced to inject money into the company to keep it afloat,” Wahaballah noted.
He went on to point out that the owner had failed to pay employees' salaries for the last two months, effectively giving the government the right to terminate the contract.
Translated from the Arabic Edition.
