Cotton Printers to reopen

former workers resuscitate the firm.
Cotton Printers had closed following viability constraints and most of its properties; especially buildings and factories were disposed to pay off creditors.
Meikles finance director Mr Onias Makamba told The Herald Business the sale of the closed unit’s buildings raised US$2 million towards settling liabilities.

But US$800 000 worth of factory equipment remained and offers came in from willing buyers, however, they were rejected to give former workers a chance.
Against this background, a total of 350 former employees of the Bulawayo-based firm will benefit from the revival of the liquidated Meikles sub-sidiary.
The Herald Business understands a board of trustees made up of officials from the Ministry of Youth Development, Indigenisation and Empowerment and Meikles will assist with the revival of the Bulawayo firm.

“Due to viability problems the firm closed and was liquidated. Buildings were sold and creditors paid. A total of US$2 million was raised from the sale. The proceeds . . . equated to what was owed to creditors,” said Mr Makamba.
“When that chapter was closed we were trying to sell the equipment. We had offers of up to US$800 000, but there was an appeal from workers who believed they could turn around the fortunes of the firm,” he said.

Management decided to sell the spinning equipment for a nominal price of US$50 000 and lease to workers the building that houses the equipment.
This is seen as part of Meikles’ broad-based approach to empowerment in line with the Government’s ongoing indigenisation and empowerment programme.
To that end, Meikles has already set aside 24 million shares that will be given to the more than 7 000 workers of the locally and London listed firm.

Shares given to workers represent 10 percent of the diversified group with 9,5 percent going to non-managerial workers and 0,5 percent to management.
This development will result in a 52 percent indigenous shareholding in Meikles against the regulatory 51 percent as compelled by the respective law.
Meikles will soon put in place structures for management to purchase 10 percent shareholding from the firm’s already existing issued ordinary share capital.

It will also be working with youth from Goromonzi, Mazowe and Norton on vegetable outgrower schemes to be funded to the tune of US$200 000 over two years. The Infrastructure Development Bank will administer the fund.