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problems.
As a result, hundreds of workers have been forced to go on leave until the mills resume operations.
According to a source close to the company’s finances, the firm needs at least US$1 million per week to meet production and administration costs.
“The money is not enough to buy wheat and maize. The management was left with no option but to suspend operations,” said one source.
“Workers were advised to go on leave until Wednesday next week, but this does not mean that the company would have re-opened by then. It is hard (for workers) to go for months without their salaries.”
BRI chief executive Mr Mike Manga confirmed the developments in an interview this week but indicated efforts were underway to resume operations.
“We will resume operations soon. We just had a minor logistical hitch,” he said.
BRI owes PTA Bank about US$2 million it borrowed last year as working capital.
The company obtained a loan of US$2,5 million from PTA Bank, which was to be repaid by July this year, but has managed to repay only US$500 000.
Despite the outstanding debt, it is understood the company is negotiating for a “top up” of another US$2,5 million since it had pledged assets worth about US$5 million as security.
Before its temporary closure, the BRI mills and factories were operating at 20 percent capa-city.
With the shortage of maize and wheat on the local market, milling companies are importing at least 70 percent of their grain requirements.
BRI has of a number of brands, including Blue Ribbon Foods, Nutresco Foods, Stockfeeds Unit, JA Mitchells and BRI Logistics.
Blue Ribbons Foods is one of the largest milling companies in Zimbabwe, known for such brands as Ngwerewere and Chibataura in the maize meal range and Blue Ribbon in the flour range.
The stockfeeds Unit is involved in production and marketing of livestock feeds in addition to offering technical advice to customers. It produces a wide range of broiler, layers and pig feeds.
JA Mitchells, incorporating Aroma Bakeries, is the group’s baking arm.
Online Reporter