More than 300 companies in Bulawayo and the Midlands applied for liquidation last year alone as the operating environment continued to worsen, records from the Bulawayo High Court have shown.
Officially opening the High Court circuit in Gweru on Monday, Justice Maxwell Takuva said the harsh environment was forcing most companies under.
Companies that have been placed under judicial management continue to face numerous challenges ranging from under-capitalisation, mismanagement and high levels of indebtedness.
Takuva said that firms were now using the provision for judicial management to avoid paying their debts, which had left many workers without jobs.
- chronicle
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