Locally owned bread maker Perfect Bakery has closed operations, leaving over 400 workers jobless.
The bakery, owned by Gift Mabvudza, began operations in 2009 and had capacity to deliver bread in most parts of the country at the time it closed shop.

Baking Industry of Zimbabwe para-legal officer Gift Maoneka told the Parliamentary Portfolio Committee on Industry and Commerce that Perfect Bakery had failed to pay workers for a year, leading it to close shop on August 21 this year.

Mr Maoneka said workers suspect that the owner squandered proceeds from the bakery leading to its closure.

“In September 2013, the company announced it no longer had money to pay workers and suppliers. That happened overnight and from the employee point of view they were not advised and did not see it coming as they thought business was running smoothly,” he said.

“In October the same year they failed to pay employees their salaries until September this year,” he said, adding that no formal communication has been sent to employees.

“Some of the creditors also started to attach properties,” added Mr Maoneka.

As at March this year Perfect Bakery owed workers in excess of $167 000.

Mr Maoneka said the bakery should be put under provisional judicial manager until the owner finds capital to inject into the business.

“We are of the view that, provisional judicial management at this point can be the best solution or capital injection,” he said.

The workers urged Parliament to intervene by assisting Perfect Bakery to find an investor that could inject fresh capital into the company.

“This is a company with a potential of employing 500 people. As at 2014 it had over 400 workers. As we speak it employs 112 employees who are not being paid,” said Mr Maoneka.

At its peak in 2010, the bakery produced 80 000 loaves of bread daily before slumping to 20 000 loaves per day as at August 21 this year. — New Ziana

 

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