According to High Court documents seen by The Zimbabwean, 10 other companies have been liquidated. Five companies were placed under judicial management in 2010 while eight companies faced a similar fate in 2011. Last year, more than six companies were placed under judicial management.
Some of the companies under judicial management include National Blankets, Cairns Foods, Belmont Leather, Textile Mills, Archer clothing and Security Mills.
Companies that are under liquidation and owe creditors huge amounts of money include Radiator and Tinning, Safety Africa and Baobab Industries.
Zimbabwe Congress of Trade Unions southern region officer, Percy Mcijo, said his organisation was greatly concerned by the number of companies which are crumbling as a result of the current micro-economic instability.
“It is sad that Bulawayo continues to experience industrial meltdown which obviously has an effect on our membership. We are urging the government to avail or facilitate capital in the form of loans to those companies so that that they can start operating efficiently,” said Mcijo.
Mcijo said companies under judicial management should be run by competent judicial managers who are capable of turning around the fortunes of the companies. An economic analyst who is based at the National University of Science and Technology, Charles Ndlovu said there was need to carry out a thorough analysis of rescue packages for companies.
“Some companies have been run down by incompetent managers. We must be very careful when we pour money into the resuscitation of such companies. We know some companies that have applied for judicial management simply to escape from paying creditors,” said Ndlovu.
Post published in: Business