KWEKWE Clothes and other immovable property at clothing retail outlet, House of Khumali, went under the hammer after owners failed to settle a huge rental bill they owed First Mutual Investment company.
The property was attached by the Kwekwe deputy sheriff over a $23 989,80 debt capital that had been accumilating since November 2010 at a rate of 5% per annum and $1 963,39 in damages per month of continued stay at the property at First Mutual Building.
Lawyers representing First Mutual, Gill Gordon & Gerrans obtained a writ of execution against Holfields Investments and its owner Johannes Rushwaya, who run the House of Khumali franchise, after they failed to meet their rentals.
The deputy sheriff then conducted a public auction on Saturday last week, which saw flea market owners in Kwekwe buying top-of-the-range suits for as low as $30, while others bought desks, hangers and changing room materials.
Sources close to the matter told NewsDay money raised from the auction would not be sufficient to offset the debt.
Meanwhile, Kwekwes leading Internet service provider Zimlink has be shut down after another writ of execution issued in favour of First Mutual caused the deputy sheriff to attach computers and Internet equipment worth thousands of dollar over unpaid rents.
Auctioning of the property was stopped at the last minute following an agreement between Zimlink owner Augustine Makoni and First Mutual on a payment plan.
The property, however, remains attached and failure to meet the bill will see the deputy sheriff disposing the assets.
Zimlink owes First Mutual a debt capital of $25 000 which is rising monthly at a rate of $1 951,80 in rentals in addition to $1 090 in operating costs for First Mutual while his property remains at the premises.