Trade Power opts for liquidation

Markets
One of Bulawayo’s largest retail and wholesale groups Trade Power Limited has been placed under liquidation after failing to settle nearly $4 million in debts.

BULAWAYO – One of Bulawayo’s largest retail and wholesale groups Trade Power Limited has been placed under liquidation after failing to settle nearly $4 million in debts.

Shareholders of the group, which owns Relama Investments, Trade Power, RST Investments and Chitrins Garage, voluntarily approached the High Court in Bulawayo seeking an order to be placed under liquidation after major creditors started to move in on the company.

Phillip Ndlovu of PNA chartered Accountant was appointed as liquidator.

According to court papers seen by The Source on Wednesday, the group also applied for a provisional order of winding up the business as shareholders want to close shop, citing mounting debts and increased competition.

The company is owned by the Chitrin Family.

Major creditors to the company include the Central African Building Society (Cabs) and AfrAsia Bank which are owed $61 860 and $92 000.

According to an affidavit written by the group’s major shareholder and chairman Rafael Chitrin the company had closed a number of businesses in Bulawayo and Harare because of low volumes before approaching the courts for relief.

He said over the past 18 months, all aspects of the group’s business have gone down leading to decreased turnover.

“Cashflows of the business have been seriously and adversely affected,” Chitrin said.

He added that the sharp drop in sales and profitability “can be attributed to closure of companies, especially in Bulawayo, over the past few year and job losses which has had an adverse effect in disposable incomes of the company’s main customers in Bulawayo in particular which is where the main business is situated.”

The group joins a long list of Bulawayo companies that are applying for liquidation as economic pressures continue to weigh down on operations.

More than 10 companies in the city applied for liquidation in the first six months of the year with fears that more will take the same route or simply shut down.

– The Source