Archer Clothing creditors submit final claims

Archer Clothing creditors submit final claims
Published: 13 November 2013
BULAWAYO-based textile firm Archer Clothing (Pvt) Ltd creditors would this month submit their final financial claims as the troubled firm's liquidation draws to a close.

According to officials from the PMA Chartered Accountants, liquidators of the company, creditors would be meeting month-end to submit their claims owed by Archer, expected to result in the final sale of the business.

"The third meeting of creditors and members will be held at Archer on the 28th of November 2013," an official from PMA Chartered Accountants who refused to be named, said.

The official said the meeting would also see the presentation of a schedule outlining how creditors would be paid. A scheme is a statutory procedure which permits a company to make an arrangement or compromise with its members or creditors (which, if approved by the requisite majority of such members or creditors and sanctioned by the court, would be binding on all of them).

Archer had given an October deadline to its creditors to submit their claims on the money they are owed.

The company was placed under judiciary management in 2010 after being seriously hit by a shortage of working capital, obsolete machinery, power challenges and cheap Asian imports which remain a major constraint for textile and clothing industries in Bulawayo and beyond.

In the same year, the clothing company scaled down operations lying off 270 contract workers and 210 permanent employees. The company is one of many entities wrecked by a decade of economic downturn.

However, last month a Harare textile firm Paramount Garments (Pvt) Ltd, announced that it had entered a cut, make, trim deal with Archer which was expected to bring financial relief to the struggling entity.

According to the deal, Paramount Garments would chip in with material and labour in the manufacturing process while Archer would provide the working space.

Paramount Garments managing director Jeremy Yomans had indicated that his company was awaiting the finalisation of liquidation process for a possible takeover of the business.

Bulawayo companies continue to sing the blues due to the prevalent harsh economic conditions evidenced by 20 companies in the city which had been put under judicial management as of June this year while 10 others were facing liquidation in the same period.

The textile industry in Bulawayo is the hardest hit and this is said to have contributed to a plunge in capacity utilisation to 39,9% from 44%.

This is largely due to shortage of working capital, antiquated machinery and stiff competition arising from cheap imports currently flooding the market.
- southerneye
Tags: Archer, Creditors,

Comments

Latest News

Latest Published Reports

Latest jobs