adminThe deal however, appears contradictory to what the board led by Mr Philip Mataranyika has embarked on.
The board wants to convert the company’s assets into real estate business that would generate US$500 000 per year while outlets that will continue selling beer would pay rentals to the real estate company.
Last Thursday the city approved a crisis management strategy that involves the disposal of the Telford outlet to Delta Corporation for US$650 000. Rufaro Marketing owes Delta, its sole supplier of beverages, US$1,2 million and has failed to pay its employees for over three months.
Funds from the sell would be considered the shareholder equity injection into the ailing business. The council resolution comes as Rufaro Marketing; a strategic business unit created by the city to generate funds to support the capital’s social responsibilities is in the red and faces liquidation if no urgent remedial action is taken. The company owes its creditors US$5,6 million as of November 14 this year amid fears the debt was ballooning on a monthly basis.
Online Reporter