One of the country's leading textile industry player, Karina Textiles last week auctioned its movable and fixed assets following its liquidation.
Theressa Grimel, who is the liquidator, confirmed the High Court's approval of the liquidation.
Karina Textiles (Pvt) Ltd, which is the country's sole manufacturer of knitting yarn, was one of Mutare's top employers with over 1 000 workers during its prime.
It becomes the second largest textile industry player to face closure after David Whitehead was put under judicial management in 2011.
Karina was established in 1959 under the name Ferguson Shiers manufacturing carpets in Mutare but was expanded 10 years later when the company ventured into knitting yarn manufacturing.
The liquidation of Karina comes following the closure of Zimbabwe Coffee Mill, Manica Boards and Cairns Foods in the past few years.
The Confederation of Zimbabwe Industries (CZI) national vice-president, Henry Nemaire described the development as depressing.
"As CZI we are very worried about these company closures. However, we have presented to government short-term and long-term solutions that they should act on to revive our manufacturing sector," he explained.