High Court extends Gloweave order of provisional judicial management

26 Oct, 2014 - 00:10 0 Views

The Sunday News

Thulani Ndlovu Business Correspondent
THE High Court last week extended an order of provisional judicial management against former leading textile manufacturer Gloweave (Pvt) Ltd to 31 January next year.
Gloweave was placed under provisional judicial management in 2012 for failing to pay salaries and service its debts due to a depressed demand of its products in the market.

This follows an application by workers through the Zimbabwe Textile Workers Union (ZTWU) for an extension.

The extension was granted last week by Bulawayo High Court judge, Justice Nokuthula Moyo.

ZTWU general-secretary, Mr Silas Kuveya, deposed an affidavit in support of the extension of provisional judicial management purporting that the workers have now turned into creditors of Gloweave as they have not been paid since 2009.

The textile company owes the workers $260 000 in unpaid salaries.

“First respondent lies dormant, no manufacturing is taking place despite the fact that it is equipped with the necessary machinery. The machinery properly put to good use can lead to the turning around of the business of the company and make it a viable concern,” said Mr Kuveya through a court affidavit.

Furthermore, Mr Kuveya accused Gloweave administration of neglecting basic management exercises which could enlighten the creditors about the strength and weakness of the company.

“The company is facing seriously challenging financial difficulties as shown by its continued failure to service debts and outstanding wages to the employees,” he said.

“The company further delved into utter failure due to the poor management of its affairs and resources.”

Thus far the provisional judicial management has failed to turn the company into a viable concern as local buyers continuously turn to buying imported products which are cheaper.

In 2012, Mr Kuveya blamed the distresses that the company was facing on management.

“Given proper management first respondent’s business is viable and will in a short term be able to trade profitable and be able to pay off its creditors.

“Production ceased. Workers are not being remunerated and debts are ballooning, however, management is standing akimbo doing virtually nothing about the situation,” he said.

Zimbabwe textile manufacturing industries are facing stiff competition due to cheap imports from China and India.

A number of textile and clothing industries in Bulawayo have closed shop in the last few years, as challenges affecting the sector continue unabated. Bulawayo, the former industrial hub of the country, used to have a number of vibrant clothing and textile industries, supplying both local and export markets.

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