Supermarket placed under judicial management

Consultants was appointed as the provisional judicial manager.
This follows an application made to the High Court by the firm requesting to be placed under judicial management after failure to offset debts owed.
Judicial management entails reconstruction of a distressed company through the appointment of a judicial manager who assumes the roles and duties of a board of directors.
The judicial manager formulates and implements a business turnaround strategy until a time when it is proper to hand it over to new management.
Sources said the retailer has been struggling to clear its debts, which are estimated to be around US$900 000 and owed to “several creditors”.
“The supermarket has been struggling in recent times and this has been manifested in its failure to service debts of over US$900 000 owed to several creditors, including suppliers,” said a source.
Reads part of the document: “The master and is hereby directed to appoint Knowledge Mumanyi or a suitable qualified person as provisional judicial manager subject to the said provisional judicial manager giving security to the satisfaction of the master.”
Zimbabwe’s retail sector, which experienced significant growth at the onset of dollarisation, appears to be struggling as companies in the sector appear to be struggling for survival.
Last month, the High Court granted an order for the provisional liquidation of supermarket chain Afrofood, which was once the fastest-growing supermarket chain following dollarisation in 2009.