Archer Clothing sets deadline for creditors

Business Reporter
BULAWAYO-based firm Archer Clothing Manufacturers, which was recently placed under provisional liquidation, has given its creditors up to mid next month to lodge their claims with the liquidator. The clothing manufacturer is one of the firms facing viability challenges.
“Pursuant to subsection (2) of Section 220, of the Companies Act (chapter 24:03) notice is hereby given to all Archer Clothing Manufacturers (Pvt) Ltd creditors to lodge their claims with the liquidator by 13 September 2013. This being the last day of receipt and proof of claims, any claims received after that date will not be accepted,” said the firm in a notice on Tuesday.

Shortage of working capital, obsolete machinery, power challenges and cheap imports remain the major constraints crippling viability of industries in Bulawayo.

The clothing and textile sector has been the hardest hit.
As of July this year, at least 20 companies in the city had been put under judicial management while 10 others faced liquidation.
In 2010, Archer Clothing scaled down operations laying off 270 contract workers and 210 permanent employees.

A consultant with a number of textile and clothing companies Dr Eric Bloch is on record urging Bulawayo firms under judicial management or facing liquidation to merge or source new investment to remain afloat.

It has been observed that putting companies under judicial management makes a meaningful foundation for their turnaround.
However, the prerequisites for turnaround include that the judicial manager must be competent and business-wise, that the company has substantive assets (albeit with inadequacy of cash resources) and that creditors are patient in awaiting settlement of debts.

Bulawayo firms under judicial management include textile giant National Blankets, Tabs-Avon Lighting, Asmara, Belmont Leather, Textile Mills, Security Mills, Archer Clothing and Universal Component, among others.