Metro Peech and Browne Wholesalers in US$229k sala...

Metro Peech and Browne Wholesalers in US$229k salary arrears

Zim Now Writer

MeCorporate Rescue Practitioner of Crowe Advisory (Private) Limited who was appointed the corporate rescue practitioner for Metro Peech & Browne Wholesales, Oliver Mtasa said the company had countless problems that led to the company’s financial distress.

Mtsasa revealed that Metro Peech has salary arrears of US$229 000.

In a report, Mtasa said lack of adequate governance structures and systems around financial discipline, poor servicing of liabilities, heavy overhead structure, stockouts, competition from the informal sector which is not subject to similar regulatory compliance and rapid expansion without adequate capital were some of the problems tormenting the company.

https://zimbabwenow.co.zw/articles/6132/oliver-mtasa-appointed-metro-peech-and-browne-wholesalers-corporate-rescue-practitioner

He revealed that the company has US$12.8 million assets which are outweighed by its liabilities totalling US$21.7 million that were broken down showing it owes suppliers US$9 835 088, banks US$5.4 million, intercompany and other liabilities US$5 million.

“At the time of placement of the company under corporate rescue, the company was paying 50% below the National Employment Council rates and was unable to pay staff salaries on time. It was also unable to settle rentals as they fall due. The company faces skills flight following salary cuts. The company has a total headcount of 497 staff comprising 392 NEC staff and 105 Managerial staff.

“Conversion of bank loans from ZWL to US$ which led to ballooning of the debt and interest payment. The company negotiated for the Reduction of interest payments to financial institutions. Inadequate capitalization resulting in negative cash flows.

“Inadequate stocking level for the market leading to stock outs and loss of customers continued disparity on the black-market vs interbank rate exchange rates to the ZWL/US$ have affected stock valuations,” reads the report.