Liquidations hit new high

HARARE - The number of companies being put into liquidation has dramatically risen to its highest levels since President Robert Mugabe’s administration took power just over 100 days ago promising to stimulate economic growth and promote new jobs.

The latest Government Gazette is replete with companies placed under judicial management,  confirming the logic that company failures rise as economies collapse.

At least four companies were placed under judicial management last week while two have been liquidated.

The November 14 Government Gazette showed that the High Court had placed the struggling firms under judicial management amid rising creditor pressure.

The judicial management regime was implemented to allow for the rehabilitation of insolvent commercial enterprises under the charge of a court-appointed officer, while keeping creditors at bay via a statutory moratorium on claims for the duration of the judicial management order.

Apex Holdings Private (Pvt) Limited (Ltd) has been placed under judicial management by the High Court.
 
Regis Saruchera was appointed the provisional judicial manager.

On the same day, the High Court also placed Gulliver Consolidated Limited and its operating divisions, Industrial Galvanizing and Fabricating, Lysaught Steel Merchants, More Wear Consolidated Industries Pvt Ltd,  Megasteel and Moresteel  Pvt Ltd under judicial management.

Saruchera was again appointed the judicial manager.

The High Court has also placed Harare Produce Sales Pvt Ltd under judicial management and Shepherd Chimutanda was appointed the provisional judicial manager.

Polyfoil Zimbabwe Pvt Ltd was also placed under judicial management by the High Court, with Tapiwa Chizana appointed provisional judicial manager.

Two companies were declared insolvent.

Stilnart Investments Pvt Ltd was placed under liquidation and David Kaiyo was appointed the provisional liquidator of the company.

On the same day, Tipbridge Enterprise Pvt Ltd was also placed under insolvency and Kaiyo was appointed the liquidator.

Even State firms are struggling to stay afloat amid a tightening liquidity crunch.

The State-run National Railways of Zimbabwe has sought permission to retrench 6 000 workers, or 86 percent of its workforce to slash running costs.

 

Comments (15)

The above article shows the writers interest and even wishes. When you refer to 100 days of Mugabe rule and the liquidation of companies as synonymous it fails my thinking. What it means is that - YOU VOTED FOR MUGABE WE WILL FIX YOU. Shame, shame, shame! Zimbabweans were killed in their hundreds and those who survived their lives have been punished one way or the other. Almighty has been on Zimbabweans side - the nation has stood its ground by God's grace. It refused to go the way of Libya, Syria, DRC, etc to mention those of Africa. Mr. Writer, your pen will go silent.

dungas - 18 November 2013

Dungas, learn to separate issues. Why are you sensationalizing the current closure of companies and those who died during the liberation struggle? It is Mugabe's duty to make the economy tick whether there are "sunctions" or no "sunctions". Mugabe contested the elections knowing very well that there are "sanctions" in place. Zimbabweans expect this government to perform and deliver on the many promises they made during the elections. It is high time this government takes proper care of the living citizens. Stop apologizing on behalf of the government.

TM - 18 November 2013

its symptoms of what was there long time and failure to innovate , most of our companies fail to utilize opportunities of which foreign firms are benefiting from us and then at the end of day you say Mugabe , do u expect mugabe to think innovatively for you

hh - 18 November 2013

@Dungas - you cannot cherry-pick history. Over 40 000 people were masacred by Zanu in Gukurahundi you fool. What have you got to say abou that? The subject here is company liquidations and you digress and start talking about Zimbabwean deaths.

Musona - 18 November 2013

When a country is doing well economically you say it is because of Mugabe's able leadership. When it performs poorly, you say do not blame Mugabe. Fools. Mugabe's policies are to blame for all the ills happening in Zimbabwe. You promised without being forced, tongai tione ZANU. Why do'nt you rig the economy, simple.

valour museyamwa - 18 November 2013

call nikuv and they can solve the economy kkkkkk

JAYJAY - 18 November 2013

thts the problem with us Zimbabwean-the subject is on liquidationand somebody brings chimurenga,we also lost relatives but hey life goes on. Elections were held when sanctions were there and guys Obama said the buck stops with me.. So it shall be ZANU should implement their promise of jobs and other things and hey dont give me the sanctions issue-all i am concerned about is the economy performing because whoever in power promised to deliver-for once lets stop seeing problems we want solutions-2000 to 2013 we are stil toking of sanctions and when do we stop ginving excuses..how much is being given to farmers and yet we ar importing food?how much is being given to MPs for their Ford Rangers and somebody tells me about sanctions-i need food on my table..plz

tonderai - 18 November 2013

gUYS LETS FACE IT IF THINGS DONT CHANGE IN THE NEXT COUPLE OF MONTHS FOR THE BETTER WE ARE GOING TO BE JOBLESS, BY THE WAY IT GOES ALONG WITH THE FAMOUS MANTRA INDI...... BLA BLA AND EMPLOY. WHY CANT YOU CATCH IT. THERE ARE MANY COMPIES BIENG OWED BY GOVERNMENT MILLIONS OF DOLLARS AND LET ME TELL YOU COME JANUARY MOST WILL WIND DOWN BECAUSE OF LACK OF OPERATING CAPITAL IWE DUNGA DONT TALK NONSENCE

vhavho - 18 November 2013

Dungas means Dunyasi

gandanga - 18 November 2013

More Wear ndaya Chiyangwaka iyi? Ma bhiriyoneya anobhuroka?

Madhunamutuna - 19 November 2013

Business fail all over the world. In fact, recent studies have shown Zimbabwean businesses to be excessively resilient. Most Zim businesses wouldn't survive a day overseas - terrible customer care, outdated equipment, poor financial management, inbuilt nepotism... The author needs to temper this piece by comparing the failure rate of businesses against other economies. The results would be surprising.

Harold - 19 November 2013

@Harold....what is your point? because businesses fail all over the world...should Zimbabweans not hold the powers that be accountable? Environment = business sucess or failure. Sad day I worked for a succesfull APEX Holdings tichiwana maincentive bonus jahwi. John Carter the former managing director must be turning in his grave.

Telescope - 19 November 2013

Chimurenga chatikuvadza, kungoidai we died for this country, ko vamakurayira nyika ino vangani? This will not revive the economy. Chinamasa anzwa nekufugamira ma china heye wakuvapa even ma minerals asingazihwe kuti aripo here hanzi tipei hedu mari mutore saka Zimbabwe will never be a colony again handiti iwo ma minerals atinovhaira nawo acho taaita mortgage zvonzi neuyu wekuenda ku diesel ku chihoyi there is nothing wrong with that.

Maita Manyuka - 19 November 2013

One thing you have to know all you here is it is difficult to build trust and it is easy to destroy that trust. They have destroyed that trust and now it will be very expensive and difficult to build it and they are not qualified to do it anyway because they are already untrustworthy. Adk anybody kuti kana mukadzi wako ambokwirwa neumwe murume ukamuregerera do you though still trust her,imika imi. They saw us destroying everything we had which had been built for us including trust now it is oay back time, Hazvitombodi America izvi zvinongoda ma normal brains emu Zimbabwe but mu zanupf hamuna normal brains. wandaifunga kuti is normal atotanga hanzi ndaida kuitwa bribe iwe taura naniko aida kukuita bribe. Kuti titi you are principled you refused a bribe, these are the calibre of minister in our so-called empowerment government. Basa kushandisa ka Patriot paper kutuka Zuma yet we are flocking down there even for paracetamol.

Maita Manyuka - 19 November 2013

Ngatimbozvibvunzai varume, pane makambani akachinja ma hands from whites to blacks, where are they now. How are they perfoming toona kuti are we disciplined. I will give a list of those I know which really performed well 1 David Whitehead 2 Kadoma Mills 3 ICL Zimbabwe 4 Kondozi Farm 5 Baldwins Steel 6 Ziscosteel 7 Lancshire Steel 8 More Wear 9 Dahmer 10 DST-aka Dave Solomon Timbers 11 PG Industries

Maita Manyuka - 19 November 2013

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