Lobels Harare bakery resumes operations

and raw material problems.
Lobels Holdings resident director and acting chief executive retired Brigadier-General David Chiweza however, said the bakery had only been closed for two weeks due to a statutory annual shut down for boiler maintenance.
“Lobels Harare Bakery was closed for two weeks due to a statutory annual shut down for boiler maintenance.
“We have resumed production after a successful maintenance programme,” he said.
Sources say the troubled business entity was desperately in need of capital to replace its ageing plant and equipment.
This comes after the collapse of deals that could have seen Lobels Holdings Limited shareholders disposing of a controlling stake to South Africa’s largest food company, Tiger Brands Ltd.
“Lobels has been on the market to recapitalise the Harare bakery and after a slip up on the Tiger Brands deal, it is not in a position to disclose its current deals with prospective investors until all parties are content and satisfied with the deal,” said Mr Chiweza.
Mr Chiweza added that Lobels has secured enough working capital to grow its current market share in Harare and the parties with vested interest will soon be advised of the company’s current position.
Mr Chiweza said Lobels remains a “big employer” despite the fact that the company has already laid off more than 400 workers in an effort to cut back on costs.
At its peak, Lobels employed 600 people.
“Lobels’ market share is growing everyday and at our peak we commanded 30 percent of the market and we are slowly reclaiming it,” he added.
According to market analysts, Lobels value ranges from US$25 million to US$30 million.
Of late Lobels Bakery has been losing market share to competitors such as Innscor’s Bakers Inn and Proton Bakeries. Mid-last year an audit report by Camelsa Chartered Accountants exposed a massive US$7,6 million fraud whereby the company was conned by dubious companies, which posed as flour suppliers.
At full capacity, Lobels produces an average of 300 000 loaves per day but the sharp decline in production in the past few years was due to inadequate funding for re-tooling and supporting operations.
Lobels commenced operations in the late 1940s under the Lobels Brothers.
The company was sold to a consortium of local entrepreneurs, which include Mr Chiweza, Mr Livingstone Gwata, Mr Fred Mtanda and Mr Herbert Nkala.