Karina Textiles fails to find investors


The country’s sole manufacturer of knitting yarn, Karina Textiles, which was placed under provisional liquidation two years ago after failing to raise new investment, has put all its assets on the market to raise funds to pay off creditors, the liquidator has said.

Theresa Grimmel said yesterday that the entire company asset base is under disposal, including land, buildings and machinery at the its Mutare factory; vehicles; the depot in Msasa and head office in Harare.

She said so far only movable assets – desks, computers, vehicles and the company depot in Msasa have so far been sold by auction but did not say how much was raised from the sale.

“The property in Mutare has not been sold. This has been extensively advertised and there were several interested parties. Offers have been made, and indeed at least two offers were accepted.

“In the end, however, the potential purchasers proved to be either time wasters or had no money. Efforts (to sell them) continue,” she said.

The company owes its workers nearly $590 000.

Grimmel said workers will only receive their dues once the Mutare assets have been disposed.

“A claim by ex-employees amounting to $588 888.47 was approved in a creditors meeting in the High Court on 12 February, 2014,” said Grimmel.

“No claims have been paid. The funds to pay claims will come from the sale of the property in Mutare when it happens.”

Karina has been closed since January 2012 and was placed under provisional liquidation on June 13 the same year.

The Zimbabwe Textile Workers Union (ZTWU) opposed the order but lost the determination on November 28 the following year.

Some of the company’s assets were auctioned in December 2013, realising only $6 000.- The Source


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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.


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