Troubled Marvo Stationery Manufacturers’ judicial manager Chrispen Mwete has warned the firm’s workers against pushing for its liquidation saying the strategy will not solve their problems. MTHANDAZO NYONI OWN CORRESPONDENT
Marvo was recently placed under judicial management, but workers have challenged the move by the Bulawayo High Court. Their case is yet to be heard.
The High Court appointed Mwete of C Mwete and Company as the judicial manager.
However, workers protested against the move arguing it would make it difficult for them to recover unpaid wages. Mwete said Marvo did not have much in terms of assets to pay off creditors.
“The decision by workers to put Marvo under liquidation can be retrogressive to some extent because the company does not own a lot of property and even the building does not belong to them,” he said.
“The equipment there is antiquated and has lost the market value.”
Mwete said for Marvo to be turned around there would be need to invest in new technology.
He pleaded with the workers to be patient with his team as they were working tirelessly to turn the company around.
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“We understand that workers are suffering and they need their monies. We are trying what we can to turn the firm around,” Mwete said.
Marvo is currently scouting for investors who would inject $2 million fresh capital for retooling amid complaints that the influx of imports is hurting its performance.
Mwete urged the government and financial institutions to support companies placed under judicial management to save them from collapse.
He said as judicial managers they were finding it hard to manage some troubled companies because the government and financial institutions were not supportive.
Marvo was one of struggling Bulawayo companies that received a loan from the government and Old Mutual-backed Distressed Industries and Marginalised Areas Fund.
The company was loaned $758 000 under the revolving fund, but still failed to resuscitate its operations.
It owes 103 workers, who have gone for 21 months without pay, in excess of $200 000.
In June, workers received payments of $10 each. Marvo was established in 1966 and at its peak, employed 600 people.
