Metro Peech Wholesalers Temporarily Shuts Down
Metro Peech & Browne Wholesalers (MPBW) has shut down for a month as it prepares to receive a US$13.5 million corporate rescue capital injection to allow stock takes, rebranding and a systems upgrade, reported The Zimbabwe Independent.
The company was placed under corporate rescue under Oliver Mtasa of Crowe Advisory (Private) Limited (OMCAPL) in September 2023 after it became technically insolvent.
As of the end of August, the firm had net liabilities of approximately US$12 631 411, against total assets of US$6 071 723.
In a statement issued on Tuesday, 07 November, OMCAPL said the closure of the wholesaler came into effect at the start of the month. It said:
This notice serves to advise that with effect from November 1, 2023, to November 30, 2023, all Metro stores across the country will be closed for the following reasons: stock takes, branding, restructuring, restocking of stores, systems upgrade, and renovation and rebranding of stores.
This follows the resolution of the creditors at a properly constituted meeting held in terms of section 143 of the Insolvency Act on the 1st of November 2023 to adopt the corporate rescue plan bringing in a new investor.
OMCAPL corporate rescue assistant practitioner Raymond Sibanda told NewsDay that the resolution to close was passed by 98,25% of affected creditors and a new investor called Sub-Sahara Capital Group (SSCG).
Sibanda said that a new investor called Sub-Sahara Capital Group will inject US$13.5 million into the company and the investment will cover working capital and payment of creditors.
Following the injection of the capital, SSCG will become the majority owner in MPBW.
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