Confectionery manufacturer Lobels Holdings has closed its Harare bakery for a month to embark on a restructuring exercise and look for new equity partners to revive its operations.
The bakery was closed on Tuesday this week and is expected to resume normal production in early July.
This is not the first time Lobels has been forced to close shop as a result of viability challenges.
Last year bread production stopped after top management was dismissed on allegations of fraud and misappropriation of company funds estimated at 10 million.
“The board and management of Lobels Holdings will take this opportunity to conclude the restricting process of the company in manner, which will preserve the value for many stakeholders at the company,” reads part of its update to shareholders.
“Negotiations with potential equity partners are at an advanced stage and periodic updates shall be given as necessary within this working period.”
National Bakers’ Association of Zimbabwe this week blamed persistent power outages, high utility tariffs and lack of long-term funding for the sorry state the bakery industry finds itself in.
As a result of the challenges in the sector, bread production has already fell by 150 000 loaves per day.