Merlin resumes its operation following business rescue strategy

YarnsandFibers News Bureau 2018-01-08 12:00:00 – Africa

One of the oldest textile companies in Bulawayo city, Merlin Limited, which was under judicial management, has secured a partnership and resumed its operation following the implementation of a business rescue strategy involving immediate injection of $2.1 million minimum working capital by one of the firm’s creditors.

In an interview on Friday, Merlin judicial manager Mr Cecil Madondo said that Merlin is now up and operational with feed material such as yarn having been procured.

Last week, we also approached Zesa and Bulawayo City Council seeking reconnection of water and electricity at the factory.

Regarding the advert on the impending auction sale is that they are conducting it to dispose of non-core assets which includes vehicles (Toyota Dyna Truck, Nissan Sunny, Hyundai Excel and Mazda F1300) and industrial machines that include washing machine, drying machines, weaving machines, winch machines and electric motors. But before the assets are disposed, they have to seek approval through the High Court.

It is hoped that with immediate injection of minimum capital, the textile giant would start production on a very small-scale, producing samples to facilitate the procurement of orders from the market.

It is envisaged that production would then increase gradually from levels ranging between 20 percent and 30 percent as more orders are received.

It also envisaged that the minimum capital would also be used to carry minor repairs and maintenance on selected machinery and equipment, which will allow the firm to start production.

The resuscitation of operations at Merlin would see the company not only focusing on producing napkins but a range of high quality and high demand products such as diapers and women sanitary wear, face towels, morning gowns, bed sheets, baby carriers, bath mats, wrappers and kitchen towels.

A proposal has also been put forward that the company sets up its own ginning plant that would create a complete production cycle and also synergise with cotton growers. Through the proposed ginning plant, the textile concern intends to produce and sell yarn, which was also on demand locally and in the region.

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