Archer recruits 160 additional workers Jeremy Youmans
Jeremy Youmans

Jeremy Youmans

Oliver Kazunga Senior Business Reporter
BULAWAYO-based textile firm, Archer Clothing, has recruited 160 additional workers as it moves to boost production targeting exports to neighbouring South Africa. Paramount Garments, a Harare-based firm now in charge of Archer, says it will go ahead with the revival of the giant clothing company despite the pending takeover stalemate.

The firm was placed under judicial management in 2010 and provisional liquidation last year due to lack of working capital before scaling down operations. A majority of Archer creditors except CBZ have voted in favour of the takeover deal by Paramount Garments. The creditors are owed more than $14 million while CBZ is owed $3,8 million.

“We’ve now decided to go ahead regardless of the court actions and have recommenced the ongoing refurbishment and improvements at the plant. To ensure we’ve sufficient adequately skilled employees, we’ve established a training school within Archer and will be training 40-50 people each month in this school,” said Jeremy Youmans, Paramount’s managing director.

“In addition, we employed 160 additional people last week who’ll be producing for export orders to South Africa.

“We’re finalising the legal and accounting issues, which are outstanding with the provisional liquidator and service providers and hope to have Archer back to full capacity by October this year.”

In September last year, Paramount recruited over 200 employees showing its commitment towards revamping the company. A majority of the workers recruited were former employees of the company. The company has said it is targeting recruiting 500 workers by end of the year, which would bring the total workforce to 800.

Youmans said the High Court sanctioned the Deed of Compromise after CBZ had filed an application to the court challenging the sanctioning of the deed. The application, he said, was in addition to the other four that CBZ had previously filed to prevent the offer from going ahead.

“On the 2nd of March 2015, the High Court sanctioned the Deed of Compromise as approved by the creditors of Archer Clothing Manufacturers in provisional liquidation at the meeting on the 14th January 2015.

“The vote of the creditors was confirmed by the Master of the High Court as being 33 in favour and one (CBZ) against. The vote for represented 75.08 percent of the debt and therefore the scheme was approved as the Companies Act requires that more than 50 percent in number and at least 75 percent in value must approve an offer,” he said.

“Obviously the creditors’ approval achieved both of the legal requirements. CBZ filed an application in the High Court to have the sanctioning of the deed set aside. This application is in addition to the other four which they had previously filed to prevent the offer going ahead.”

Youmans said this forced them to suspend further expansion at Archer while his company took further advice on the probability of saving Archer being thwarted. The takeover negotiations between the two companies started in 2013 after they initially entered into a cut, make and trim arrangement.

Under the deal, Paramount supplied clothing material and labour while Archer provided working space. Paramount Garments has so far invested more than $2 million in Archer and in the long-term $5 million capital injection is required to refurbish property, machinery, cater for human resources and working capital.

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