Wise Owl Motel closes

MUTARE - Wise Owl Motel has given notice of closure, pushing over 60 employees out of their jobs following failure to settle its rentals, the Daily News can report.

In a retrenchment notice to its 61 employees, the Hlanganiso Matangaidze-owned motel cited viability challenges for its impending February 2015 closure.

In the letter, Matangaidze also revealed that a $50 000 High Court edict to pay employees their outstanding salaries compounded its financial woes.

“Wise Owl Motel (Pvt) Ltd has been renting the business premises from Wise Owl Properties (Pvt) Ltd and consequently due to bad economic environment the company has not been viable,” reads the termination of employment letter signed by Matangaidze.

“As you are aware, the company was granted a judgment against them in the matter between the general secretary of the National  Employment Council for the Catering Industry Wise Owl Motel (Pvt) Ltd Case No: HC7072/12 in the sum of US$53 441,45, which debt it is unable to pay off and thus has also been worsened by failure to pay rentals to the lessor, who has given (3) three months’ notice of cancellation of the lease agreement.

“As a result, the company is shutting down its operations within the next (3) three months. It is in this view that we formally give you (3) three months’ notice of termination of the contract of employment effective 14th of November 2014,” Matangaidze told his employees in the letter.

Contacted by the Daily News, he however, said this was only part of a restructuring exercise as he was looking to bring in a new partner.

“This is only as part of a restructuring effort as we want to bring in a partner in the business,” Matangaidze said.

Comments (2)

Matan is trying to cheat the government and his employees. The Law and Justice must take its course. Matan usade kungwara zvenhema. You own wise Owl Motel. zve rent zvabvepi

TRUTH MATTERS - 26 November 2014

this is very sad! why do we (black people) take pleasure in oppressing each other?? how do one sleep at night knowing that some families are without food and school for children just because the employers enslave and take advantage of the employees?? where in the world can one survive without full salary for 3 years? people like Hlanganiso Matangaidze don't deserve mercy of any kind of blessing - they are cursed from birth hence they suffer in the process of oppressing their own brother/sister! You know u haven't been financially loyal to your employees for years, you know they have families to feed ,just like you....but still you send them away without pay....aaaaagh that's very inhuman! industrial oppression and slavery is unforgivable.......shame to you, shame to you and all your ruthless business mafias !

rhue ef sumtin - 19 February 2015

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