Paramount Garments eyes Archer

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A HARARE textile firm, Paramount Garments (Pvt) Ltd, is finalising talks with troubled Bulawayo clothing concern — Archer Clothing Manufacturers (Pvt) Ltd — with a view of resuscitating operations of the Belmont-based company currently under provisional liquidation.

BY GAMMA MUDARIKIRI
OWN CORRESPONDENT

Information obtained by our sister paper Southern Eye Business yesterday indicate that the Harare-based firm last year submitted a proposal on the takeover of Archer Clothing Manufacturers (Pvt) Ltd which was, however, rejected by the troubled firm’s creditors.

The Harare-based firm is, however, said to have revised and resubmitted the scheme of arrangement and is now awaiting a response from the creditors on a date to be announced by the court.

Paramount Garments (Pvt) Limited managing director Jeremy Yomans confirmed the development and said his company has revised and resubmitted the proposal for the possible takeover of the Bulawayo firm.

“The first schedule we submitted was rejected by the creditors and we had to resubmit another schedule. We are now waiting for the court to announce a date for a meeting with creditors for the consideration of our fresh proposal,” Yomans said.

Negotiations for the takeover of the troubled Bulawayo firm, which threw hundreds of workers onto the streets, started last year after the two textiles firms initially entered into a Cut Make Trim (CMT) deal.

Under the CMT deal, Paramount (Pvt) Ltd assisted with clothing material and labour while Archer Clothing chipped in with working space pending the liquidation process of the Bulawayo firm.

Archer Clothing was laid low due to a myriad of problems, top among them a harsh economic environment and a liquidity crunch which has seen several local firms close or listed in critical condition.

The company was placed under judiciary management in 2010 after being seriously hit by shortage of working capital, obsolete machinery, power challenges and cheap imports which remain major constraints crippling viability of industries in Bulawayo.

In the same year, the clothing company scaled down operations, laying off 270 contract workers and 210 permanent employees.

The company is one of many entities wrecked by a decade of economic downturn.

As of July this year, at least 20 companies in the city had been put under judicial management while 10 others were facing liquidation.

The textile industry in Bulawayo is the hardest hit.

Some of the Bulawayo firms under judicial management include textile giant National Blankets, Tabs-Avon Lighting, Asmara, Belmont Leather, Textile Mills, Security Mills and Universal Component.

12 COMMENTS

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  2. tangai mambopawo mari vashandi varikuno kuharare these people ,anenge awana two hundred kupea kwemwedzi anototi mwari wangu ,asi woda kutenga kumwe ,ipai vanhu mari mhani

  3. The owner of Archer is a rascist, Black people who were loyal to the extent tht thy were with him thru thick and thin and the company expand due to hard works of blacks in his firm but diched them for unqualified South African consultents who could nt writter proper english or spellings but were employed in the name of rascism.These Unqualified consultants were treted like kings at the expense of hard working local people to our surprise the factory manager was never given a car and a house but ths consultants were given mansions luxury cars and thr children were taken to expensive school.To David Lasker wht goes around comes around your fake and unqualified expatriots cost u to the extent of depriving your inheritance and Yomen never practice rascism coz you will be like Lasker.

    • i think this good for us also. paramount has a very good pricing for their finished products. how can a shirt be priced at $15 – $40 yet the material costs not more than $5. Too much greed is wreaking havoc in our industries and one by one they have fallen on the wayside. Concentrate on selling volumes at the lowest possible price like the Chinese. TO THOSE STILL STANDING JUST TRY THIS YOU WONT GO WRONG

  4. How sad that when a small ray of light is offered we show our racist tendencies by some of the comments made. We really need as Zimbabweans to remove ourselves from the yoke of racism perpetuated by Robert Mugabe & realise our only chance for a new Zimbabwe is by depending on ourselves. Yes we might not always agree but lets be mature enough to talk these through & set the right values and principles for us to be guided by. Ever noticed how after the end of virtually every major conflict the principles sat down & talked matters through? . At its height this country was build by all races in different ways. Without each other we wouldn’t have done it. We cant undo the past but we can influence what kind of future we have.Come on Zimbabweans we are better than what the world thinks we are!!

  5. Things will always be to the advantage of what everyone is calling the Jew Yomans! I think it needs to be looked at closer to see what the ( jew ) is up to!

  6. It seems Yomans is being singled out for alot.He must be notorious.the fact that he a jew doesnt seem to help his cause or his kin

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