Archer Clothing Manufacturers to officially slip out of liquidation

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THE Bulawayo-based clothing concern, Archer Clothing Manufacturers, is set to officially slip out of liquidation after making some significant strides towards revival, NewsDay has learnt.

BY MTHANDAZO NYONI

Archer was placed under judicial management in 2010, after failing to raise working capital. It was put under provisional liquidation last year.

Philip Ndlovu of PNA Chartered Accountants was appointed the provisional liquidator.

In a notice to Archer creditors, Ndlovu revealed that the distribution account has been prepared in accordance with the scheme of arrangement approved by the creditors of Archer Clothing Manufactures (under liquidation), at a scheme meeting held on January 14 this year.

He said all creditors for Archer were advised to go to the Master’s office at the High Court of Zimbabwe in Bulawayo to view the distribution account which lies ready for inspection.

“As soon as the necessary formalities are completed the company will be removed from provisional liquidation,” Ndlovu said.

Archer creditors in January approved its take-over by Harare-based Paramount Garments, saving it from liquidation.

ARCHER

Take over negotiations between the two companies started in 2013, after they initially entered into a cut, make and trim deal.

Under the deal, the Harare company supplied clothing material and labour, while Archer provided the working space.

At the first vote last March, 44 out of the 45 creditors approved the Paramount bid, but one dissenter’s objection delayed the process.

Another attempt to take over the firm suffered a still birth after a creditors and members’ meeting that was set for November 5 last year failed to take place.

Archer Clothing was then given up to January this year to conclude the takeover or risk being liquidated, throwing more than 200 workers recruited in September last year out of work.

However, in January, the majority of creditors who are owed more than $14 million, approved the bid, while CBZ Bank, which is owed $3, 8m voted against it.

The takeover led to the revival of one of Bulawayo’s oldest companies. It was established in 1953 and before its collapse, was among the largest garment manufacturers in the country.

Paramount has so far committed $3,5m in reviving Archer, which needs about $5m in the long-term to refurbish property, machinery, cater for human resources and working capital.

Recently, Paramount group financial director, Jeremy Youmans, revealed that the Bulawayo textile company has pushed up production to 74% of capacity after committing nearly $3, 5 million towards working capital and refurbishment of property and equipment.

Currently, the company has about 631 employees, with the ideal number seen at 850, according to Youmans.

2 COMMENTS

  1. my Aunty Brianna just got a great Lexus IS F Sedan just by some parttime working online with a macbook…
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  2. Happy days!!! This is a great company, with great products to offer. At its height, it exported good quality clothing. Let’s hope this heralds a new era of sustained success.

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