local news

550 jobs at Price Club

The Price Club supermarket chain's successful sale to the Libyan foreign company LAFICO may mean that 550 people will be back at work as early as the first week of September.
Although 400 workers lost their job some weeks ago, there were 550 people working with the Price Club Chain approximately a year ago. The company had started to downsize because of money problems.

LAFICO has apparently finalised its deal with the Price Club former owners.
The General Retailers and Traders Union (GRTU), captained by Vince Farrugia, has expressed its fierce opposition to the sale of Price Club foreigners even though LAFICO is a well-known company in Malta and the Corinthia Group of Companies forms part of the company. The renowned and international company FIAT also has a small share in the company.

According to the GRTU, the government is moving blindly and dangerously on the issue.

The GRTU is stressing that the wholesale and retail sector is not in need of foreign investment.

The GRTU sees no reason why policy should be changed just because one particular retailing group has let itself get into financial difficulties. The Union recalled how, during Price Club’s rapid growth, traders suffered unduly because of what the GRTU called “unfair and unacceptable practices.”

And in a statement issued yesterday, Alternattiva Demokratika accused both the GRTU and MLP of exhibiting xenophobia in its opposition to the takeover of the bankrupt Price Club.

LAFICO has agreed to inject Lm1.5 million into the Price Club and Lm2.5 million in long awaited payments to creditors. However, this falls well below the Lm8 million outstanding payments to various local producers and import companies.

But a spokesman for Price Club is confident that the government will issue the necessary permits for the takeover to happen.

It is interesting to note that the Leader of the Opposition, Dr Alfred Sant, is also against foreign investment at Price Club.