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Ngoni Dapira
THE proprietor of the long-established Mutare hotel Wise Owl Motel, Mr Hlanganiso Matangaidze, has revealed that he was considering different options including offers from investors to buy the hotel.Mr Matangaidze, who is also the Zimbabwe National Chamber of Commerce national president, told Post Business that new developments would take place within the next three months to February 2015.
“The business has not been performing well, so what else can I do? There are, however, many takers who want the Motel, but will see after three months as we restructure the business.
“The liquidity crisis is a sad reality affecting several businesses throughout the country,” he said.
In a notice to employees last month dated November 14, Mr Matangaidze cited viability challenges and said he was being forced to shut down in three months, by end of February, or sell the place as the company goes through restructuring.
Over 60 employees might be rendered jobless if the hotel closes down.
In the letter, he also revealed that existing financial woes, including outstanding salaries of US$53 441,45, compounded him to restructure.
“Wise Owl Motel (Pvt) Ltd has been renting the business premises from Wise Owl Properties (Pvt) Ltd and consequently due to the bad economic environment the company has not been viable,” reads the termination of employment letter signed by Mr Matangaidze.
“As you are aware, the company was granted a judgment against it in the matter between the secretary-general of the National Employment Council for the Catering Industry-Wise Owl Motel (Pvt) Ltd Case No: HC7072/12 in the sum of US$53 441,45 — which debt it is unable to pay off and thus also worsened by failure to pay rentals to the lessor, who has given (3) three months’ notice of cancellation of the lease agreement.
“As a result, the company is shutting down its operations within the next (3) three months. It is in this view that we formally give you (3) three months’ notice of termination of the contract of employment effective 14th of November 2014,” read the letter to employees.
If Wise Owl Motel closes down, it will become the second hotel in Mutare to wind down operations following the closure of the exquisite Penhalonga-based hotel, La Rochelle in January.
Long-established hotels in Mutare such as the Christmas Pass Hotel and Mt View Hotel have also been singing the blues, citing a difficult operating business environment.
The ZNCC boss added that it was a shame that employees were not seeing the plight of employers in the wake of the existing nerve-wracking liquidity crunch.
“There is a liquidity crunch out there but nonetheless, employees expect us to pay them. I understand their position but we should also all look at the root cause of the situation, our economy, before pointing accusing fingers,” said Mr Matangaidze.
Online Reporter