adminNgoni Dapira
MOVABLE property of the country’s sole manufacturer of knitting yarn, Karina Textiles (Pvt) Ltd, is expected to go under the hammer in May, Post Business has learnt.
Karina Textiles shareholders applied for liquidation in 2013 after being placed under provisional liquidation in 2012 when business viability had proven unproductive.
The liquidator, Ms Theressa Grimel, confirmed the development.
She said they had failed to sell the company’s movable and immovable property as one entity and were now forced to auction all the movable property.
“We failed to sell the company as a unit, so in May we will be holding an auction to sell all the movable assets. All the production line equipment and furniture is still there. We just sold all the company vehicles early last year,” said Ms Grimel.
She, however, said she would advise on the actual date of the auction.
The closure of Karina Textiles came as a heavy blow to Mutare’s Nyakamete Industrial Site, which is now an eyesore with only a few companies left still operational.
Last year, Government saved the Chegutu-based David Whitehead Textiles company from being liquidated.
The company is currently operating at 40 percent capacity producing 40 000 metres of fabric per-week.
Economist Mr Tendai Mukarakati said Government should step in and try resuscitating Karina Textiles before it is stripped.
“Government through the Zimbabwe Agenda for Sustainable Socio-Economic Transformation is advocating for value addition and beneficiation to widen revenue streams and employment opportunities.
“Preserving key industries like Karina Textiles would make better sense rather to strip it down,” said Mr Mukarakati.
He said through the Buy Zimbabwe drive a local market for carpets and yarn could be secured to support the company and create job opportunities.
Karina Textiles in 2012 applied to the High Court for provisional liquidation, as the textile sector continued to struggle due under-capitalisation and competition from cheap imports from China.
In its prime years it used to employ over 600 workers.
In 2012 Karina Textiles required $2,2 million to re-capitalise.
According to sources that requested anonymity the liquidator was first selling the entity for $5 million.
She, however, reduced the price to $1,6 million late last year after there were no takers.
Online Reporter