FURNITURE retailer Pelhams has suspended its shares from trading on the Zimbabwe Stock Exchange after the company applied for voluntary suspension after debt choked its operations.
High defaults saw the company’s debtors book grow resulting in it failing to pay its creditors. Pelhams joins more companies that have left the local bourse on the back of a deteriorating economic environment.
“Following an application by TN Harlequin Luxaire limited and another creditor, the company was placed under provisional liquidation with effect from November 18, 2015. The company had failed to pay its debts to TN Harlequin Luxaire Limited and other creditors due to the fall in consumer demand and failure by the company’s debtors who are predominantly civil servants to pay their debts,” the company said in a statement.
“The application by TN Harlequin Luxaire Limited to place the company under liquidation followed the refusal by other shareholders to support TN Harlequin Luxaire Limited’s request to recapitalize the company.”
J Pelhams Limited was demerged from Delta Corporation Limited on March 31, 2002 througha dividend in-specie distribution before converting into a public company listed on the ZSE by way of introduction of April 3 of the same year.
In 2002, then majority shareholders Profurn was taken over by the JD Group in South Africa resulting in a restructuring that saw Profurn selling its interest in Pelhams to offshore investors.
In 2008, Pelhams acquired manufacturing firm Tradewinds before TN Holdings Limited bought 56,57 shareholding in the furniture retailer.-Staff Reporter