adminHARARE textile firm, Paramount Garments, has expressed frustration over the continued delays in their bid to take over Bulawayo clothing concern, Archer Clothing, adding that the workers were bearing the brunt of this holdup.
Paramount Garments managing director, Mr Jeremy Youmans, said it was their aim to rehire staff that was laid off by Archer Clothing when they were placed under provisional liquidation as full employment is needed to run a company.
“It is quite a sad situation because we made our offer six months ago and the delays are very frustrating. All workers are at home waiting for the whole process to be finalised,” said Mr Youmans.
The company was negotiating with Archer Clothing judicial manager Mr Philip Ndlovu who, however,declined to shed light on the deal.
“I can only answer the questions next week,” he said.
Despite assertions that Paramount Garments was now operating at Archer Clothing, Mr Youmans said this was not entirely true as they were only selling their products at one of the shops which was not on liquidation.
“We have not started operating in Bulawayo as we are still awaiting approval. The creditors, save for one, approved our take over. When we do start, there will be a lot to do like ordering raw material, setting up systems and re-hiring workers,” he said.
Paramount Garments took the initiative to invest in Bulawayo when the city has been hit by massive de industrialisation showing that there were still investors and business people who believed the once industrial hub could be restored to its former glory.
Responding to questions why his company decided to invest in Bulawayo, Mr Youmans said they saw this as an opportunity to expand their capacity as well as try and play their part in reviving the textile and clothing sector and industry in Bulawayo.
“We know we are taking a big risk but we were not scared to come to Bulawayo. This is a city that was once the hub of the textile and clothing industry. Archer Clothing offered an opportunity that can see us expanding our capacity,” he said.
The first schedule to take over Archer Clothing that Paramount Garments submitted was rejected by the creditors and they had to resubmit another schedule.
Negotiations for the takeover of the troubled Bulawayo firm, which threw hundreds of workers onto the streets, started last year after the two textile firms initially entered into a Cut Make Trim (CMT) deal.
Under the CMT deal, Paramount Garments assisted with clothing material and labour while Archer Clothing chipped in with working space pending the liquidation process of the Bulawayo firm.
Archer Clothing faced a myriad of problems which included a harsh economic environment and a liquidity crunch which has seen several local firms close or listed in critical condition.
The company was placed under judicial management in 2010 after being seriously hit by shortage of working capital, obsolete machinery, power challenges and cheap imports which remain major constraints crippling viability of industries in Bulawayo.
In the same year, the clothing company scaled down operations, laying off 270 contract workers and 210 permanent employees.
The revival of the company would be welcome news for the industry, which at its peak, used to produce about 135 million garments annually, compared to the current 18,7 million garments.
The industry employed 35 000 workers compared to about 7 000 presently.
Online Reporter