HomeBusiness DigestPelhams still to acquire Flair Furnitures

Pelhams still to acquire Flair Furnitures

Roadwin Chirara

PELHAMS Ltd is still to conclude its negotiations to take over furniture manufacturer, Flair Furnitures (Pvt) Ltd.

lvetica, sans-serif”>In the deal, Pelhams intend to take over the furniture company and at the same time allow it access to its export markets, a move which would increase revenue and sales for the furniture retail company.

The deal, which has been on the cards for some time, is reportedly being delayed by the retail company’s intention to settle its current debt.

In a recent interview, the company’s financial director Phineas Whata confirmed that the deal was still to be concluded.

“There are issues still to be dealt with before we conclude the deal, but as a company we are still very much interested in concluding the issue,” said Whata.

He said the company was focusing on restructuring its huge debt.

“We are in the process of completing the restructuring of the company’s debt and after that we will follow up on the deal,” Whata said.

He said the process to conclude the deal would take a long time because of the many procedures that the company needed to go through in order to be fully committed to any transaction.

He said the company would have to come up with a circular for its shareholders and seek approval for the deal.

Whata said the company was currently depending on borrowings since it was lacking shareholders’ funds for recapitalisation.

He said the increased cost of borrowing because of high interest charges has had a negative impact on the company.

“We have had to borrow in the absence of shareholders’ funds in recapitalising the company, but the increased cost of funds has had an impact on the company mainly because of high interest charges,” said Whata.

He said the company’s sales volumes continued to grow significantly but lack of funds had restricted stock supplies to its branches.

“Our sales volumes continued to grow but we experienced some restrictions in stock supplies due to the lack of funds and this had some impact on our branch operations, but currently what we are buying is being bought,” said Whata.

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