More than 300 companies apply for liquidation

Some 300 companies in Zimbabwe’s Midlands and Bulawayo applied for liquidation in 2013 alone as the operating environment continued to deteriorate, the Zimbabwe National Chamber of Commerce newsletter has revealed.

According to the newsletter, the chilling economic situation was disclosed by High Court Judge, Justice Maxwell Takuva, at the official opening of the High Court circuit in Gweru last Monday.

“The harsh environment was forcing most companies to go under,” said Takuva.

Takuva said companies that have been placed under judicial management continued to face numerous challenges ranging from under-capitalisation, mismanagement and high levels of indebtedness.

The judge also said that firms were now using the provision for judicial management to avoid paying their debts, which had left workers without jobs.

Post published in: Business

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