10 February 2011

Zimbabwe: Jaggers Put Under Liquidation

JAGGERS Wholesalers, a company owned by businessman Cecil Muderede, has been put under liquidation after Apex Holdings' subsidiary - Marondera Foundry Manufacturers' - applied to the High Court to have the company wound down.

Justice Lavender Makoni heard the case.

Marondera Foundry Manufacturers, represented by Claudious Nhemwa of C Nhemwa & Associates, applied for the liquidation of Jaggers and Trador private limited arguing the move would protect creditors.

The wholesaler paid their supplier only US$1 222,82 out of the outstanding US$10 458,33.

Claudious Nhemwa, who refused to comment on ethical grounds, confirmed he was representing Marondera Foundry Manufacturers.

Justice Makoni appointed Regis Saruchera of Grant Thornton as provisional liquidator, under provisions of the Companies Act.

Since acquiring Jaggers in April 2010, businessman and farmer Muderede did not only face problems with his employees over non-payment of wages, but a series of court cases.

Last year, Muderede bought a controlling stake from Metcash Africa, a South African company, in a "recapitalisation" deal.

Jaggers at the time had shut 11 of its branches.

Jaggers assets went under the hammer to pay off US$443 795 to Delta Beverages.

Transaction Payment Solutions, a subsidiary of Econet Wireless, also compounded Jaggers' problems after the company attached properties to offset a US$40 000 debt.

Heavy import dependency and the emergence of small retailers affected the performance of the wholesaler.

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