adminthe bakery confirmed that a significant portion of the company’s property, including confectionery equipment and vehicles, have been attached over debts estimated at US$1 million.
But Lobel’s Holdings resident director and acting chief executive Retired Brigadier-General David Chiweza said although creditors were threatening to attach the company’s assets, the bakery was still operational.
“There was action threatened against us, but Lobel’s has not shut down. If we are shutting down, then we must shut down everything,” he said.
Lobel’s was at one time the leading bread-making firm in the country, but has of late been driven to the brink of collapse by mounting debts, including those owed to Zesa, Gamster Petroleum and Sagie.
Production levels at the bakery’s Harare and Bulawayo plants is now estimated to be around 125 000 loaves per day.
At its peak, the firm produced about 300 000 loaves of bread daily. But the sharp decline in production in the past few years was due to inadequate funding for re-tooling and supporting operations.
Rtd Brig-Gen Chiweza said the firm was currently arranging to settle the debts as well as looking for funds for recapitalisation.
He added that the bakery has managed to secure US$4 million from a local bank. CBZ Bank and Metropolitan Bank are some of the banks owed money by Lobel’s.The company has been looking for possible partners to recapitalise since last year and recently resumed operations after it was shut down late last year due to capital and raw material problems.
According to market analysts, Lobel’s is valued between US$25 million to US$30 million.
The company has been facing stiff competition from other established bakeries, including Innscor’s Baker’s Inn and Proton Bakeries.
Online Reporter