Lasker Brothers building sold to recover $6 million debt

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HARARE textile firm Paramount Garment (Pvt) Ltd has bought a building belonging to troubled Bulawayo Company, Lasker Brothers (Pvt) Ltd currently in liquidation, in a bid to recover a $6 million debt.

MTHANDAZO NYONI
OWN CORRESPONDENT

The building was sold for $400 000.

Lasker Brothers was placed under judicial management last year and finally liquidated in July this year after failing to settle debts amounting to $6,559 million it owed several creditors, including workers.

Philip Ndlovu of PNA Chartered Accountants was appointed liquidator.

Lasker Brothers, a subsidiary of another troubled Bulawayo textile firm Archer Clothing Manufacturers, started operating in the 1950s and is among the city’s oldest companies.

Thamsanqa Siwela of PNA Chartered Accountants who is also one of the liquidators, confirmed the deal with Southern Eye Business on Friday.

Siwela said the liquidator, according to Companies Act, has powers to sell by public auction, deliver or transfer the movable and immovable property and distributing its assets.

“We have sold the building to Paramount Garment (Pvt) Ltd to recover the amount owed to creditors,” he said.

Archer Clothing was placed under provisional liquidation last year, but in March this year, creditors approved its take-over by Harare-based Paramount Garments, saving it from being shut down.

Presently liquidators of Archer are in full talks with Paramount Garments (Pvt) Ltd in attempts to rescue the firm, but the deal has been delayed by sharp differences among creditors.

As of July last year, more than 20 companies in Bulawayo have been put under judicial management while more than 10 others were facing liquidation.