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Oliver Kazunga Senior Business Reporter—
ARCHER Clothing has up to January next year to conclude the takeover of the company by Paramount or risk being liquidated, which will see more than 200 workers recruited in September becoming jobless again. The company has been battling operational challenges that saw it being placed under judicial management in 2010 due to shortage of working capital before scaling down operations with dozens of workers becoming redundant.

Creditors approved the company’s takeover by Paramount Garments, a Harare-based clothing firm at the High Court in March this year – saving it from liquidation.

However, the acquisition is yet to be finalised as one of Archer creditors has voted against the takeover.

According to a notice, Archer Clothing, which at the moment is under provisional liquidation said a new creditors and members’ meeting would be held at the Bulawayo High Court on January 14, 2015.

The meeting comes after the creditors and members’ meeting that was set for November 5, 2014 failed to take place as the High Court ordered that the meeting be held not less than 14 days after the notice had been given to creditors.

The purpose of the forthcoming meeting was for creditors and members to provide proof of claims as well as voting on the scheme of arrangement.

Paramount Garments managing director Jeremy Youmans told Business Chronicle last week that the survival of Archer Clothing still hung in the balance as the conclusion of the takeover deal was yet to be finalised.

“A new creditors and members’ meeting for Archer Clothing has been set for the 14th of January 2015. However, I don’t remember as to when the return date to finalise on the takeover of Archer by Paramount Garments will be. But we’ve been informed that it’s sometime in January next year,” he said.

“We’ll have to stop continuing investing into the company until the takeover deal is finalised.”

Paramount Garments has so far committed $2 million in reviving Archer although the deal is yet to be finalised.

The new investor also intends to employ more than 800 people before the end of 2015 if the deal sails through.

Archer Clothing needs about $5 million capital injection in the long-term to refurbish its property, machinery, cater for human resources, and working capital in stocks and debt.