STRUGGLING Marvo Stationery Manufacturers is scouting for investors who would inject $2 million fresh capital for retooling amid complaints that the influx of imports is hurting its performance.
The Bulawayo-based firm was placed under judicial management last month after the High Court accepted its application. The move blocked workers from attaching its property to recover unpaid wages.
Marvo judiciary manager Chrispen Mwete of C Mwete and Company told Southern Eye Business that the company needs a lot of capital as its machinery was obsolete.
“My assessment at the firm pointed out that the company’s machinery is too old and there is need for new machinery for us to be able to catch up with the global standards and to remain competitive,” he said.
“We are looking for investors who will inject fresh capital of about $2 million for recapitalisation and retooling.”
Marvo workers on Wednesday met with Mwete threatening to challenge the placing of the company under judicial management.
“We wonder what exactly convinced the court into granting Marvo the judicial management status,” one worker who requested anonymity said.
“The issue of how Marvo is going to recapitalise was not addressed and there is no payment plan.
“The only thing they have mentioned is that it will be unfair for workers to attach the property when there are other creditors, which is baseless, since none of the so-called creditors ever approached the courts except the workers.
“The bottom line is, we are opposing the whole process because it is not genuine.”
Marvo was one of the 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 20 months without pay, in excess of $200 000.
In June, the workers received payments of $10 each.
Marvo was established in 1966 and at its peak, employed 600 people.