Archer reinstates 205 workers

Bus2Senior Business Reporter
ARCHER Clothing in Bulawayo has reinstated 205 former employees in the last three weeks and plans to increase the workforce to 850 early next year, an official has said.The company is aiming at regaining its grip in the wake of a takeover deal running into millions of dollars by a Harare based textile firm, Paramount Garments, which is set to breathe new life into its operations.

Briefing Industry and Commerce Minister Mike Bimha after touring the company premises in Belmont on Friday, Paramount Garments managing director Jeremy Youmans said the finalisation of the takeover deal was imminent and their plans were also targeted at penetrating the export market.

“At the moment, we’ve employed 205 workers and as we increase our capacity our aim is to employ 850 people by the end of the first quarter next year,” he said.

“The legal process, which is yet to be finalised, is delaying our plans to increase our production capacity.  If the takeover deal is finalised we’re hoping that by this time next year, we would have invested $5 million into Archer.

“We’re also in discussions with a safari wear company in Germany and the US so that we export. Our plans to export are dependent on the orders,” said Youmans.

Bimha commended efforts to resuscitate the firm saying the move was a sign Bulawayo still has the potential to reclaim its industrial prowess.

Archer was placed under  judicial management in 2010 after failing to raise working capital and subsequently on provisional liquidation last year.

In March this year the company’s creditors approved its take-over by Paramount Garments at the High Court, saving it from liquidation.

However, one of the 45 creditors is said to have voted against the acquisition of the Bulawayo clothing giant by Paramount, a move that is blamed for stalling the whole process.

The matter has gone through the legal process and if the takeover deal is concluded, the company intends to improve capacity to 25 percent in the initial stages of production from zero percent.

Youmans also said refurbishment of the company premises has begun as part of the turnaround programme.

Archer Clothing is one of the strategic firms in Bulawayo given its employment capacity.

Its revival is envisaged to boost the local clothing industry and morale of the Bulawayo population whose city has suffered massive de-industrialisation due to the economic challenges.

At its peak, the textile sector used to produce about 135 million garments annually, compared to the current 18,7 million garments.

The sector employed 35,000 workers countrywide compared to present levels of just under 7,000.

You Might Also Like

Comments