In a newspaper advertisement published last week, Cotton Printers invited bids for the takeover of the company from interested buyers.
The notice read: “Tenders are hereby invited from Interested Parties to take-over/purchase the spinning, weaving and wet processing operations of Cotton Printers (Private) Limited (in liquidation), on a going concern basis.
“Parties interested in acquiring all or any of these operations are being invited to register their interest in writing to the Cotton Printers Transaction Advisors at CAMELSA chartered accountants….. before 2 July 2010.”
Cotton Printers, a Bulawayo-based textile company, was the country’s major producer of bed sheets with over 300 employees until it ceased operations and put its assets on sale. The company’s employees applied for judiciary management on the basis that given time, the company would turn around. However, the company’s lawyers, Gill Godlonton and Gerrans, concluded that the company was beyond redemption and that liquidation was the only option.
Liquidation is the process by which operations of a company (or part of a company) are wound up, and its assets and property redistributed.
Textile firms have hit hard times with some falling under the care of judicial managers and some being closed over the years.
Government’s failure to come up with an import quota in the textile industry has not helped the local industry. Cheap imports from China have flooded the market.
When reached for comment this week Meikles Ltd CEO Brendan Beaumont referred all questions to company secretary Andrew Mitchell. Mitchell had not responded to businessdigest’s enquiries at the time of going to press.