TN Harlequin in major shutdown

Published: 19 November 2013

FURNITURE retailer TN Harlequin is set to close down most of its factories and significantly reduce its workforce as the company respond to massive decline in demand for its products.

Chief executive of TN Lifestyle Holdings, which owns TN Harlequin, Mr Tawanda Nyambirai also said the group would "with immediate effect" dispose of some properties to raise about $6 million to fund the retrenchment exercise and salary arrears.

TN Harlequin is a dominant furniture retailer. However, its furniture sales have dropped from between $1,8 million and $2,1 million per month to between $500 000 and $800 000 per month. But the costs have remained more or less the same.

TN Harlequin owns four factories in Harare and these are Case Goods factory, the Beds Factory, the Foam Manufacturing Factory, and the Lounge Manufacturing Factory.

In Bulawayo, the company has a sawmilling business known as Wood Industries which operates on its premises. It also has a combined Case Goods and Lounge Factory in Bulawayo.

"Management is currently discussing the feasibility of closing down, or significantly down scaling some of these operations," Mr Nyambirai said in a statement.

"The company will (also) commence the disposal process of the properties with immediate effect to ensure early payment of the exit packages and arrear salaries. We will fund the retrenchments from the disposal of some of the properties we own.

We own properties in Harare, Bulawayo, Victoria Falls, Masvingo, Chivhu, Zvishavane, Chiredzi, Mutare and Marondera with a value estimated to exceed $6 million."

Mr Nyambirai said the company employs over of 1 000 workers and "most of these" would be retrenched to aligned to the level of business that the company was getting.
- herald