The Sunday News
PARAMOUNT Garments will inject more than $5 million in the recapitalisation of Bulawayo’s Archer Clothing Company which will culminate in resumption of exports once production improves.
The Harare-based company is in the process of taking over Archer Clothing after creditors approved the takeover in March — saving it from liquidation.
However, its full acquisition is still to be finalised as one of the 45 creditors is contesting the takeover.
Paramount Garments managing director Mr Jeremy Youmans told Sunday Business on Friday last week that operations at Archer Clothing resumed three weeks ago with 205 people being employed in the process.
“We are looking at injecting over $5 million with most of the cash going towards working capital. Already we have completed some of the refurbishment which includes renovations of the factory and repairing of boilers, compressors, among other machinery. We started operations and we have since employed 205 workers,” Mr Youmans said.
The clothing firm has been battling operational constraints that saw it being placed under judicial management in 2010 due to shortage of working capital before downsizing and laying off thousands of workers.
He said over 80 percent of Paramount Garments’ products are manufactured for the export market and as such there were anticipating that Archer Clothing’s brands would also grab a market niche in the countries it has consolidated itself in.
“Paramount Garments has been exporting to Germany for the past 25 years and Archer even went down there in 2009. We have strong relationships with a number of companies there. We also do exports to Botswana, Namibia, Zambia, Malawi, Guinea and Tanzania,” Mr Youmans said.
He also said in an effort to cater for the local market in Bulawayo, the company would open a retail outlet in the central business district before the end of the year.
“We are going to open a retail outlet in three months time, which will be offering goods at almost wholesale price,” Mr Youmans said.
He said the influx of cheap imported clothing in the country would not force the company to compromise on quality.
“We don’t want to sacrifice our quality and make cheap quality. Also you have to realise that a lot of the goods that we have to compete with are smuggled and don’t pay duty,” Mr Youmans said.
He said the company would continue to import its raw materials as the country’s cotton quality was low while the sector is fragmented.
Speaking after a tour of the Archer Factory, Industry and Commerce Minister Mike Bimha said there was a need for concerted efforts by both Government and stakeholders to revive the country’s industries.
“We have gone through a lot of problems and a rough patch as a country but the right message is that it can be done. I have known Archer for some time, producing quality brands but the important thing is to show other industrialists that (reviving a company) can be done.
“Of course there will be other challenges of getting orders because most of the people were thinking that Archer was dead and because of that this led to them to resort to making orders from elsewhere,” Minister Bimha said.
At its peak Archer used to employ more than 18 000 workers.
