Red Star Wholesalers (Pvt) Ltd has changed its name to West Star (Pvt) Ltd to be consistent with the West Group brand.
The group acquired Red Star branches four months ago and plans to open 30 new branches in the next two years.
West Star (Pvt) Ltd, chief executive officer Ken Sharpe said, “The ‘Red’ has been dropped and the ‘West’ has been introduced. It was good for us to use Red Star and we think it’s better to be on our own.”
New branches have been opened in Tsholotsho, Murombedzi, Kotwa and Mutoko.
Sharpe said the company had completed the transaction involving acquisition of Red Star wholesalers Leopold Takawira Street and Bulawayo.
The company is waiting for Starafricacorporation to give them listing rights.
“Our association with Red Star is no longer there. We are not associated with it and we are not part of it. We had no responsibility to take any of the debts and Starafrica has to take care of the debts,” Sharpe said.
Red Star was formerly a subsidiary of Starafricacorporation before being acquired by West Star (Pvt) Ltd this year.
Sharpe said they were not part of the provisional liquidation ordered by the High Court to Red Star Wholesalers this week.
High Court judge Justice Francis Bere on Tuesday granted a provisional liquidation order under case number 11465/2011.
Part of the order reads: “Subject to subsection (1) of section 274 of the companies Act (Chapter 24:03) Cecil Madondo is appointed as provisional liquidator of the above company with the powers set out in section 221(a) of the Act.
“Any interested party may appear before the court sitting at Harare on February 15 2012 to show cause why a final order should not be made placing the applicant in liquidation and ordering that the costs of these proceedings shall be costs of liquidation.”
As of September 25 2011 Red Star Wholesalers total current liabilities stood at $8 731 670 while assets were at $365 741 and there was no cash in the bank at all.
Sharpe said the company would be complying with the 51% indigenisation law when it lists on the Zimbabwe Stock Exchange and would be giving the shareholding to its customers.
“We are still waiting so that in the new year we can reactivate plans to list as West Star. One percent of our customer’s money will be converted to shares,” he said.