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The Bulawayo-based textile firm was placed under judicial management last year following viability challenges.
Creditors who attended a creditor’s meeting at the firm’s premises proposed a vote of no confidence in Mr Ndlovu.
The creditors’ meeting was also attended by National Blankets managing director Mr Shingi Samuriwo.
“As creditors we are very much concerned that although the company was placed under judicial management it continues to sink.
“In addition, we hoped that the recent retrenchment of some of the workers was going to see the company’s operations improving but it continues to sink.
“It’s sinking because it is just a question of mismanagement taking place. By reducing labour, we thought that the situation at National Blankets would improve but it’s getting worse.
“We request that the judicial manager (Mr Philip Ndlovu) should step down and pave way for fresh blood,” said one of the creditors, after Mr Ndlovu had presented a comprehensive income statement for the year ending 31 December 2012.
The creditors said they did not want to see one of Zimbabwe’s textile giants closing down.
“Efforts should be made to save National Blankets from total collapse. We are concerned that the firm’s situation is worsening,” said another creditor during the meeting.
Responding to the call that he should step down, Mr Ndlovu said he was prepared to do so if the creditors’ proposal was put in writing. “I am not opposed to your proposal. I am prepared to leave and will do so if you make an application directly to me in writing or to the master of the High Court,” he said.
He admitted that the firm’s trading position continued to sour although losses were reduced from $3.8 million in 2011 to $621 947 last year.
“Not only we are insolvent but our balance sheet is getting worse. There is a scheme of arrangement that we are working on to re-arrange the firm’s balance sheet. In the next 30 days, I will communicate with you so that we move ahead”.
He said National Blankets required in excess of $4 million to remain afloat.
“Our balance sheet is getting weaker and weaker and we are not paying our creditors. At the moment, we are not trading efficiently. We are operating at less than $4 million and there is a massive trading problem at the company. I have made a presentation to the shareholders that we cannot continue operating,” said Mr Ndlovu.
He said if the company was to be liquidated through a forced sale, its fixed assets, presently valued at $8,4 million, would realise less.
Online Reporter