BULAWAYO – Harare textile firm Paramount Garments has started operations at Archer Clothing Manufacturers despite delays in confirming its takeover of the troubled firm by the High Court, an official said on Tuesday.
Archer was placed under judicial management in 2010 after failing to raise working capital and subsequently under provisional liquidation last year.
“We have started yesterday (Monday) with the people doing the preparatory work for the first batch of manufacturing,” Paramount managing director, Jeremy Youmans said.
“The target (for capacity utilisation) is 100%, but we are still being constrained by the ongoing (court) process and the efforts of one creditor to prolong the process to their advantage,” he added.
He said there are 45 creditors in Archer Clothing and only one has voted against Paramount’s offer.
“Now that we have decided to go ahead and get the company operating, we are putting together ranges of clothing to complement our current range and marketing the extra capacity in the local and export markets,” Youmans said.
He said Paramount would upgrade Archer’s equipment, which is outdated and expensive to maintain, to international standards, and had started rehiring workers.
Archer was one of the biggest employers in Bulawayo, but most of the workers were laid off in 2010 when the company was placed under judicial management.
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