CHEMCO Holdings has closed its two subsidiaries - Farma A Rama Retail and Farma A Rama Transport - due to viability problems.

According to information at hand, Chemco Holdings human resources manager Israel Muza addressed the companies' employees on Tuesday advising them that the two divisions were being closed with immediate effect due to operational challenges.

A total of 50 employees were left jobless after the closure of the two subsidiaries, 20 from retail and 30 from the transports divisions.

TSL, the majority shareholder in Chemco with 60% equity, was represented at the Tuesday meeting by its human resources director, Findros Godzi. Chemco contributes 25% of TSL revenue.

On Wednesday, Godzi would neither confirm nor deny the closure of the two companies.

Employees of the two companies said they were stunned by the move to close the firms.

"We were not even advised in advance that the companies will be closed," one of the affected employees said. "Management came with papers which showed that our contracts had been terminated. We were instructed to complete some forms, which among other procedures, highlighted how our outstanding payments would be made, including our August salaries."

The employees said they were told that Chemco had contemplated selling off the two companies, but received no meaningful offers.