The company employs about 120 workers and is owned by former Speaker of Parliament, Sobusa Gula Ndebele’s, family. In a letter to workers, the provisional liquidator, Cecil Madondo of Tudor House Consultants, said he had taken the action in terms of the Insolvency Act. G and D Shoes was placed under provisional liquidation by the High Court in Harare on 18 August. “Regrettably, it is therefore necessary for me to close the Company by ceasing all operations on 25 August at 1500 hours. Accordingly, in terms of Section 103(4) of the Insolvency Act [Chapter 6.04], all employment, both waged and salaried will be terminated at the same time,” said the letter to workers.
Mandondo said only skeletal staff would be engaged to keep the company running at a reduced level to maintain it in a condition that would attract potential investors. He said it was within his powers either to carry on or discontinue operations at the Belmont-based company.
Since the introduction of the multiple currencies last year in February, G and D Shoes has been facing numerous operational challenges leading to employees on several occasions resorting to industrial action in a bid to force the management to pay them their outstanding salaries. The provisional liquidator said when the investment climate in the country improved the firm might resume operations, adding he wanted the firm to be an active entity and not to shut down.
Post published in: Economy