BULAWAYO mayor Martin Moyo has pleaded with financial institutions owed by the Archer Clothing Manufacturers to “soften” their stance to allow the revival of one of the city’s historic companies.
Last month, Archer creditors approved its takeover by Harare-based Paramount Garments, saving it from liquidation.
Last week, however, Archer’s production manager Peter Msimanga said the court was yet to give a ruling despite 33 out of the 34 creditors who are owed more than $14 million, approving the Paramount bid.
The creditor who voted against the bid is owed $3,8 million and is believed to be CBZ Bank.
Archer was placed under judicial management in 2010 after failing to raise working capital and provisional liquidation last year.
“Archer is an iconic textile industry in Bulawayo and it cannot be allowed to crumble taking into consideration the number of people the firm is currently employing,” Moyo told Zimbabwe National Chamber of Commerce delegates who toured the company last week.
“They are employing about 300 people currently and have plans to increase the number to over 841 by end of year.
“I would like to plead with the financial institutions owed by Archer to have mercy.”
Paramount has so far committed $2 million in reviving Archer, which needs about $5 million capital injection in the long term and new equipment. – The Source