Stuttafords, the South African department store which was once the paragon of retail in the country, is permanently closing its doors on August 1st. Two outlets in Gauteng and four in Cape Town already closed and they will be followed, in the next few weeks, by all stores in Namibia and Botswana.

The trading environment for Stuttafords has been challenging for a while, not only due to the specific economic situation in South Africa but also due to their business model. Stocking well known, high-end brands and creating a Harrods-like department store environment is already challenging enough – getting much more so when consumer spend falls and when the rand drops, making import costs spike. This was not, however, the only reason – or maybe not even the main one – for Stuttaford’s demise. The bad relationship between the two main shareholders has been pointed out as a great factor in this outcome.

Stuttaford’s closure is not only a problem for all its staff but also for the company’s 280 creditors which include world brands like L’Oréal or Levi Strauss.