Archer Clothing takeover to proceed

26 Oct, 2014 - 00:10 0 Views
Archer Clothing  takeover to proceed

The Sunday News

archerPARAMOUNT Garments’ takeover of Archer Clothing is unlikely to be stalled by the pending court case as the creditor protesting the move is in support of the revival of the clothing manufacturing firm but is just seeking recourse on other legalities.

The company’s provisional liquidator, Mr Philip Ndlovu, said there were no prospects of Archer Clothing going back to judicial management or liquidation as the recapitalisation of the firm by the Harare based clothing manufacturer (Paramount Garments) was set to benefit the 45 creditors in the near future.

The High Court in Bulawayo has set 5 November for creditors of Archer Clothing to present further proof of claims and to vote again on the offer from Paramount Garments.

In March this year, creditors voted to approve the firm’s takeover by Paramount, a Harare textile company, but the takeover is yet to be concluded after one of the 45 creditors voted against the acquisition.

“Its (Archer Clothing) days of judicial management and liquidation are over, it is the creditors’ interest and the general public to send the right signal that it can be done with the goodwill that is in the country.

“It’s not the creditor’s intention to disrupt the takeover. They support the whole idea of creating jobs in Bulawayo. There are just one or two issues that are in the courts that need ironing out before the matter is finally sorted but they are not disruptive and against resuscitation of the industry,” Mr Ndlovu said.

He, however, could not be drawn into mentioning the grievances or claims of the creditor delaying the takeover, saying it would be improper as the case was in the courts.

“The scheme which is being implemented is going to benefit all the creditors in the long run because now they will be dealing with a more rejuvenated Archer than the one which was saddled with debt.

“The fact that the creditors have lost their money, we also sympathise with them but that is a national problem it obviously emanated from the sanctions and the rest of the things that the sanctions brought to this country,” Mr Ndlovu added.

He said the move by Paramount Garments should be applauded as it was a clear testimony that some Zimbabwean corporates were committed to reviving the economy.

“If we as Zimbabweans can come up with something like what Paramount Garments has done it’s amazing because we are not bringing in a foreigner but we are bringing in a local corporation, which knows the landscape and understands the environment as well as aspirations of the people and embraces Zim Asset,” said Mr Ndlovu.

Despite the stalemate, Paramount in September resumed operations at the company, employed over 200 workers and expects to add another 100 jobs by year-end. It has so far committed $2 million in reviving the company and intends to spend another $5 million in expanding its operations.

“Without going into specifics we have seen a keen interest of orders that are coming from local consumers, which is going to lessen the export and import bill,” said Mr Ndlovu.

The Association for Business in Zimbabwe said the delay in the resumption of full operations at Archer Clothing was a cause for concern with regards to employment creation.

“As captains of industry we are concerned by the delay in the finalisation of the take over as the revival of Archer Clothing will increase job opportunities in Bulawayo and it will mean a number of families will be able to improve their livelihoods. We therefore hope the issues that are stalling the process will be ironed out as soon as possible,” said ABUZ chief executive officer, Mr Lucky Mlilo.

 

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