Over 30 companies liquidated

abandoned-factory-shell1.jpg

MORE than 30 companies have been liquidated this year with several others in the process of winding up operations or under judicial management, a development which would result in the loss of at least 1 990 jobs as Zimbabwe’s economy declines further.

Kudzai Kuwaza

According to statistics compiled by the Zimbabwe Congress of Trade Unions (ZCTU), 32 firms have wound up operations this year, with the furniture industry the most affected. Companies that have closed shop in the sector are Treadwinds, Ruwa Export, Hunyani Forest, Durawood, Marondera Sawmills, Ruwa Export, Woodwise and Silcome.

Although the total number of workers affected by the liquidation of furniture companies was not available, 230 workers were affected by the liquidation of three companies, Treadwinds (100), Silcome (80) and Woodwise (50), suggesting the total figure is much higher.

More than 460 workers were rendered jobless after four companies in the clothing sector went bust this year. These are Sybrook which employed 180 workers, Julie White Dresses (130), Kamunda Investments (64) and Laurel Creations (90). Companies in other sectors like engineering and construction that have liquidated include Kenmark, Auto Electrical and WRS.

Among firms in the process of liquidation are furniture enterprise JW Wilson International which employs over 1 000 workers, clothing company Security Mills, whose closure would throw 300 workers onto the streets and retail outlet Shoppa Stoppa.

Furniture company Woodwise Harare, textile firms Irazim & Travan and Perfect Bakery are under judicial management.

ZCTU secretary-general Japhet Moyo said yesterday the list is not exhaustive as they are still compiling statistics on companies in the manufacturing sector that have liquidated or are in the process of doing so.

He, however, said their findings so far were “deeply disturbing”.

“It is a very frightening situation,” Moyo said.

Most of the liquidations were not only due to the decline of the economy, but also attributable to poor corporate governance and mismanagement practices, he said.

The job losses due to company liquidations add to more than 5 600 workers retrenched this year.

Moyo recently said that 52 companies had retrenched hundreds of staff this year. The economy, reeling from low aggregate demand, falling production and a liquidity crunch, among a plethora of other problems, is now technically in recession after two successive quarters of negative growth.

9 thoughts on “Over 30 companies liquidated”

  1. moe_syslack says:

    Meanwhile Zanu is busy purging individuals…

  2. icho says:

    Your report only touches the surface of what it was trying to reveal. how could you leave big corporates like Phoenix Consolidated Industries, Pacprint, Cairns Foods, Blue Ribbon, Cottco, Star Africa that are all struggling to stay afloat and some under judicial management

  3. Wilbert Mukori says:

    THE ZANU PF DOG-EAT-DOG FIGHT HAS DONE NOTHING TO DISTRACT THE ECONOMIC MELTDOWN – THE WEEDS DO NOT STOP GROWING AND CHOKING THE CROPS BECAUSE THE LAZY FARMER HAS GONE FISHING. WHEN THE REGIME IS DONE WITH THE FIGHTING THERE IS THE ECONOMIC NIGHTMARE TO DEAL WITH AND IT IS NOT AN EASY PUSHOVER LIKE MUJURU OR TSVANGIRAI.

  4. C Frizell says:

    As an ex-manufacturer (of Solar DIY systems) I know that Zimbabwe is extremely anti-business, there is generally no conception of how business works. The “indigenisation” idea is certainly the second biggest disaster in the country’s history. No economy can grow based on theft and racism.

  5. ndaziva says:

    Is zanupf still blaming sanctions?

  6. E Makhate says:

    Zanu, a primitive party run by neanderthals is busy fighting for positions while the country is on the downward trend, shutting down. Soon Zim will be like Somalia. Mugabe has successfully destroyed the country. What a man and what a party of ignoramus.

    1. Wasu says:

      Somalia is now better than Zimbabwe. Agricultural production is increasing each and every year and its growth rate is above Africa average. They now have better power and water supply than us thanks to their GCC friends. We are now ranked below Somalia!

  7. ronaldos says:

    Somalia is well known for its piracy policies ie hijacking cargo ships off it’s coast line and then stealing the contents which belong to others. So what’s the difference between them and Zimbabwe’s ZANU pf ????? Nothing it seems as Zanu pf hijacked the commercial farms and stole every thing ” assets ” that did not belong to them . When that was exhausted they then created an indigenisation policy on industry thereby stealing once again what did not belong to them. Further to that they then stole the peoples tax money to buy farming input’s ( Combine harvesters, tractors, Mercedes benz, fertilisers, seeds ,chemicals and over seas holidays, ladies of the night etc etc. ) Off course both Somalia and Zanu pf don’t see it as stealing ,that word is only relevant when something is taken from them, even if it was stolen in the first place by them.

  8. Sharon Levett says:

    J W Wilson International is still operational and not under liquidation.
    It would be wonderful if reporters actually did their jobs instead of printing an article purely on hearsay. I wonder how many companies are still trading even though they have been reported as closed or under liquidation.

Comments are closed.

Top