CAIRO (Updated 2) - Egypt's Administrative Court Saturday cancelled the 2006 sale of department store chain Omar Effendi to Saudi Arabia's Anwal United Trading because it wasted public money, Judge Hamdi Yassin announced. The sale of Omar Effendi to Anwal was void due to so many violations of law," Yassin said, ordering that the department store be returned to the state. The ruling can be appealed. Omar Effendi Stores Limited was established in 1856, and is Egypt's largest department store with 82 branches and 68 warehouses. Anwal's purchase of 90 per cent of the company was completed in February 2007. Anwal operates the franchise of renowned brands such as Etam, Orchestra and Trucco, operating more than 100 shops across Saudi Arabia. Public Sector Enterprise Authority representative Adel el-Mowzi welcomed the restoration of the historic chain, saying the State was ready to put forward the necessary plans to help revive the store. "It's a good move and we are ready to manage the store," said el-Mowzi. Lawyer Hamdi el-Fakharani, who led a successful campaign to restore state lands sold to some real estate companies, filed a lawsuit claiming that the privatisation of Omar Effendi was invalid as it was sold at a quarter of its value. Omar Effendi was sold to the Saudi Anwal Company in a deal that was LE700 million less than half the estimate of the official value. The department store was losing ground until 2006, when it was sold to Anwal. The chain has only seen losses since, and is still heavily in debt.
