BULAWAYO-based textile firm National Blankets (Pvt) Ltd creditors will next month submit their financial claims as the troubled firm’s liquidation draws to a close.
Own Correspondent
According to officials from the PMA Chartered Accountants and liquidators of the company, creditors will be meeting in December for a report on the scheme of arrangement and distribution to creditors as the process for the final liquidation of the company draws to a close.
“The second meeting of creditors and members will be held at National Blankets on 13 December 2013,” an official from PMA Chartered Accountants who refused to be named said.
The official added that the meeting would see the presentation of a schedule outlining how creditors would be paid.
A scheme is a statutory procedure which permits a company to make an arrangement or compromise with its members or creditors (which, if approved by the requisite majority of such members or creditors and sanctioned by the court, would be binding on all of them.
The textile industry, especially in Bulawayo, is in a quandary and one the most hit by the prevalent harsh economic conditions.
Last week, Archer Clothing (Pvt) Ltd was reportedly finalising a liquidation process after also being hit by shortage of working capital, antiquated machinery and the influx of cheap foreign commodities that have flooded the market.
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Bulawayo companies continue to sing the blues due to the prevalent harsh economic conditions evidenced by 20 companies which had been put under judicial management as of June this year while 10 others were facing liquidation in the same period.
The textile industry in Bulawayo is the hardest hit and this is said to have contributed to a plunge in capacity utilisation to 39,9% from 44%.
More than 10 big companies in the clothing industry in Bulawayo have closed shop in the last few years as challenges affecting the sector continue unabated.
These include True Value, Label Fashion, Suntosha Leisure Wear, Luncaster, Harren Manufacturing, Ascot, Belmor Fashions, Cinderella and Rusglen Fashions, among others.
