Awlad Ragab is shutting down more of its branches: Supermarket chain Awlad Ragab is liquidating some EGP 850 mn worth of assets before the end of the year in an attempt to avoid default, a company official is quoted as telling As harq Bus iness. The company is selling eight branches, a factory, and a warehouse to repay part of its dues to banks, leasing companies, and suppliers, the news outlet reported.

A shift in strategy: Awlad Ragab plans to use part of the proceeds to reopen some of its more feasible branches in Cairo, Giza, and four other governorates.

It’s been a tough year: The company has slashed its branch count almost in half to 43 this year, half of which are rented, according to Asharq. According to its website, the supermarket is currently present in a number of governorates including Cairo, Port Said, Marsa Matrouh, Suez, Red Sea, and Beni Suef.

This comes as no surprise: The indebted supermarket chain has been looking to restructure since January, when owner Mahmoud Ragab revealed that the company has accumulated over EGP 2.2 bn in outstanding debt. The company sold three branches in May for EGP 100 mn, which helped it pay some of its dues, according to local media reports.

Background: Awlad Ragab has been in the industry since before the Open Door policy of President Anwar Sadat, having gotten its start as a wholesaler in 1970. It moved into retail some 20 years later and went on a growth spree in the early 2006s fuelled by both acquisition and organic expansion.

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