Entrepreneurs • Business • Africa

Hope for Zimbabwe’s National Blankets

09 Jul, 2019 • by Fashionomics Africa
Hope for Zimbabwe’s National Blankets
Fashionomics Africa

It has been years since National Blankets, a textile company based in Bulawayo, was announced to be in the process of liquidation. According to news articles, many years ago the woven blanket company was facing a drastic fall in terms of demand. Also, because the company was first created in 1940, the industry’s technology was very different and the company was only able to manufacture woven blankets instead of highly knitted blankets that were increasingly becoming more popular as the years went by. Due to the failure of National Blankets to update its manufacturing process, as well as an increased debt due to the failure of payment from several big clients (army police, hospitals), the company was forced to close.

 

It seems though as if hope has come back for the company, since only 2 months ago, an investor from Italy booked a meeting and showed extreme interest in bringing the company back to life. According to Minister Ncube, the Minister of State for Bulawayo provincial affairs, the investor has already visited the company twice and in her words “It is something which is there and I can tell you with confidence that there is something happening. I’m so happy that as Bulawayo we will be witnessing some of these investors coming to join us in making our vision of resuscitating Bulawayo industry a reality”.

 

Although the name of this investor has still not been revealed, there is great expectation coming from the result of this decision. Many are excited because of the impact it could have on future employment for their children and families. Also, the economy will become benefited from the re-opening of National Blankets.

 

According to an article in https://www.chronicle.co.zw, “Last week, the Zimbabwe Asset Management Company (Zamco) told this paper that it was ready to disburse a $5 million recapitalization facility to Merlin once the company is handed over to its shareholders by the judicial manager.” Although nothing has been signed yet, negotiations are currently on their way and the investor is traveling back and forth in order to polish up the negotiations regarding the business deal. Hopefully, this will be a complete success and National Blankets gets back in business once again.

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