Categories: Stories

Anchor Yeast in trouble

Zimbabwe’s sole yeast producer has plunged into insolvency after putting its assets, including the head office for sale, signalling the fall of one of the most iconic firms in the country after nearly six decades.

Anchor Yeast Properties, the real estate arm of Anchor Holdings today said it will sell its three business premises including the head office in Gweru as well as business assets, indicating the company has lost the battle against cheap imports.

“Notice is hereby given, in terms of Section 47 of the Insolvency Act (Chapter 6:04) that each of the under mentioned companies proposes to alienate: (a) its business; (b) the goodwill of the business; or; (c) assets or property forming part of the business,” otherwise than the ordinary course of the business, reads a notice issued by law firm Kantor and Immerman.

The proposed alienation also entails sale of business as a going concern including its goodwill, capital assets excluding liabilities incurred up to June 12 this year.

The notice comes over a year after company executives approached parliament lobbying for a three year ban on imports to save the business.

In February 2014, company chief operating officer Muvirimi Kupara told a parliamentary portfolio on industry and commerce such protectionist measures would help the company raise $4.5 million internally to retool by 2017.

Kupara said Anchor was losing $3 million in turnover per annum because of competition from cheaper imports from Zambia and South Africa.

The company, which employed 101 employees then, has been in existence since 1956.

Kupara said Zimbabwe requires 5 400 tonnes of yeast per annum while Anchor has installed capacity to produce 7 000 tonnes but was operating at 60 percent.

It supplies yeast to baking, brewery and ethanol industries.-The Source

(257 VIEWS)

This post was last modified on %s = human-readable time difference 6:17 pm

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

ZiG loses steam, falls against US dollar for five consecutive days

The Zimbabwe Gold fell against the United States dollar for five consecutive days from Monday…

November 22, 2024

Indian think tank says Starlink is a wolf in sheep’s clothing

An Indian think tank has described Starlink, a satellite internet service provider which recently entered…

November 18, 2024

ZiG firms against US dollar for 10 days running but people still do not have confidence in the currency

Zimbabwe’s new currency, the Zimbabwe Gold (ZiG), firmed against the United States dollars for 10…

November 16, 2024

Zimbabwe among the top countries with the widest gap between the rich and poor

Zimbabwe is among the top 30 countries in the world with the widest gap between…

November 14, 2024

Can the ZiG sustain its rally against the US dollar?

Zimbabwe’s battered currency, the Zimbabwe Gold, which was under attack until the central bank devalued…

November 10, 2024

Will Mnangagwa go against the trend in the region?

Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…

October 22, 2024