Kingstons property attached over Gramma debt

HARARE - One of the country’s recording companies Gramma Records is attaching property from Kingstons Holdings Limited over debt.

Both Gramma Records and Kingstons Holdings seem to be struggling to stay in business.

It is still not clear why Kingstons Holdings’ property will go under the hammer, but an instruction from the Sheriff of the High Court of Zimbabwe has set the auction at Ruby Auctions on January 23.

Emmanuel Vori, a director at Gramma Records was not at liberty to comment on the issue, but referred all the questions to the company executive director Elias Musakwa who was not picking up his phone by the time of going to print.

Music industry sources believe Kingstons Holdings could have been one of Gramma’s product distributors, distributing music CDs and DVDs. They believe Kingstons Holdings breached their contractual agreements by failing to remit funds from the sale those of music products.

Property of the stationery company to go under the hammer include a computer Acer monitor, five sculpture statues, five floral reception seats, two fans, three piece glass coffee table, round steel bookshelf, five metal filing cabinets, two armchairs, two swivel chairs, metal filing cabinet, two office desks and a two-piece dresser.

Government is the major shareholder in the struggling stationery company which is reportedly on the verge of collapse — with debts amounting to over $5,3 million.

Since the introduction of the multi-currency system in 2009, the group has struggled to remain afloat due to stiff competition and working capital constraints.

Sources close to the developments told Daily News that the institution has been battling to pay workers for several months while bailiffs have been constantly knocking at its doors.

“Kingstons has a whopping 106 litigation cases at various stages in the courts. Currently all our vehicles and all the head office furniture is attached pending removal upon hearing of interpleaders,” said the insider.

The source said Kingstons Holdings owes tax collector, Zimbabwe Revenue Authority (Zimra) approximately $500 000, Old Mutual $289 000 and $142 000 in contributions to the National Social Security Authority, among other creditors.

Recently the High Court ordered the sale of the stationery retailer’s commercial stands in a bid to recover $300 000 owed to ZB Bank.

In 2010, Kingstons Holdings devised a strategy to diversify its interests away from selling books, magazines, newspapers and scholastics stationary to information and technology as well as entering the leasing business.

However, the initiative failed dismally due to lack of working capital.

The group, sources say, used to have 24 branches across Zimbabwe, but has in the past year been evicted from rented premises at Cabs Centre, Pearl Building, Westgate, High Glen, Chitungwiza Town Centre, Pearl Building in Mutare, Pearl in Gweru, Bulawayo Centre in Bulawayo, Rusape, Gwanda and Kwekwe.

Post a comment

Readers are kindly requested to refrain from using abusive, vulgar, racist, tribalistic, sexist, discriminatory and hurtful language when posting their comments on the Daily News website.
Those who transgress this civilised etiquette will be barred from contributing to our online discussions.
- Editor

Your email address will not be shared.