HomeBusinessParamount to spend $3m on Archer Clothing

Paramount to spend $3m on Archer Clothing

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PARAMOUNT Garments plans to spend $3 million in resuscitating the operations of Bulawayo-based Archer Clothing if creditors approve its bid to take over the manufacturing firm next month.Archer-clothing-factory-along-Plumtree-road-in-Belmont

MTHANDAZO NYONI
OWN CORRESPONDENT

The Bulawayo High Court set November 5 for Archer creditors to present further proof of claims and to vote again on the offer from Paramount Garments.

Paramount Garments managing director Jeremy Youmans told Southern Eye Business that production at the factory continued on an upward trajectory.

Youmans said Archer was already manufacturing garments for export on behalf of Paramount.

He said the outcome of the November 5 vote would decide the future of Archer. If the takeover bid is approved the troubled clothing giant would resume exports early next year.

“The capacity of Archer is about 800 workers, so next week we will be at about 33% capacity utilisation,” Youmans said.

“We would like to build this up further, as we will be getting more orders, but we will only be able to allocate that extra work to Archer depending on the decision next week.

“If the offer is not approved, we will probably have to turn down the orders while we try and develop further capacity somewhere else.

“So far we have spent about $2 million (and) if we are able to proceed with the investment, we expect to spend a further $3 million.”

Youmans said they had employed 241 people at Archer and were expecting to add another 20 next week. In March this year, creditors voted to approve the firm’s takeover by Paramount, a Harare textile company, but the process is yet to be concluded after one of the 45 creditors voted against the acquisition.

Despite the stalemate, Paramount in September resumed operations at Archer and it has so far committed $2 million in reviving the company and intends to spend another $5 million in expanding its operations.

Archer was placed under judicial management in 2010 after failing to raise working capital.

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