Pelhams property to be auctioned

HARARE - Listed upmarket furniture retailer Pelhams Limited (Pelhams)’s property is set to be auctioned today over $70 000-plus owed to the Local Authorities Pension Fund (LAPF).

After winning a High Court case number HC780/12, LAPF seeks to recover from a sale-in-execution of Pelhams’ assets, which include nine new beds, two coat beds, four-piece lounge suite and a nine piece dining room suite.

Other pieces to go under the hummer, at KM Auctions, include six new television sets, four computer desks, two stands, one four plate gas stove, three kitchen sinks, wardrobes, chest of drawers and various types of refrigerators.

In March 2012, the retailer was ordered by the High Court, in a matter before Justice Samuel Kudya, to vacate LAPF premises in the Harare CBD after failing to pay $15 368 for rental arrears and $916 for operating costs.

“It is ordered that defendant pays $5 175 per month for holding over damages from 1 June 2011 to date of eviction together with interest at the prescribed rate per annum on these amounts from 1 June 2011 to date of full payment,” read part of the court order.

Pelhams was also ordered to meet the costs of the lawsuit.

This comes as the firm is facing challenges in raising funding for restocking to generate sales and is undergoing a debt restructuring exercise.

Efforts to get a comment from Pelhams’ finance director Emmanuel Mukuze as his mobile phone went unanswered while LAPF’s officials referred questions to its property manager Bard Real Estate.

The development comes as Pelhams’ losses widened to $3,3 million from $1,7 million in the year to March 2014 as sales declined by 69 percent to $2,62 million.

Comments (1)

What a shame, employees are also not being paid and one really wonders where the money is going to???????

OZZIE - 25 September 2014

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