By ZBC Reporter
FORMER TEXTILE giant, David Whitehead Limited (DWTL), is expected to be removed from judicial management by March this year following a ZWL5,4 million recapitalisation by a new investor, Agri Value Chain Zimbabwe.
The once listed company used to employ over 3 000 workers however in the early 2000s before economic woes which took a toll on the firm leading to massive retrenchments and shutdown of some of its major units.
The firm was eventually placed under judicial management to search for a new investor and protect the interests of shareholders.
Judicial Manager for the entity, Knowledge Hofisi said a new investor accounting for a 51 per cent stake has injected funds to revive Kadoma and Chegutu factories.
“We are working towards the resuscitation plan of this former textile giant and we hope by March all will be in place,” he said.
In 2018 the firm resumed operations at its Chegutu factory after receiving a $2 million bailout from the Reserve Bank of Zimbabwe, but it was not for long.
The company had ceased operations about two years ago due to working capital constraints.
Formerly listed on the Zimbabwe Stock Exchange, DWTL was placed under provisional judicial management in December 2010 before confirmation of the final order in March 2015. It was delisted in 2009 following the acquisition of a controlling stake by Elgate Holdings, which has since been reversed after it failed to pay for the stake. DWTL used to produce 20 million metres of fabric per year while directly employing 3 000 workers and thousands in down and upstream industries.
By ZBC Reporter