Breaking News

UBM shuts down after 50 years

by Staff reporter
15 August 2018 | 3866 Views
United Builders Merchants (UBM) has shut down after operating in Zimbabwe for the past 50 years.

According to employees who spoke to the Daily News on condition of anonymity, UBM management announced last week that the company was filing for liquidation.

Last month, the company's managing director, Michael Bones, read out an e-mail from UBM's major shareholder, Andre Prinsloo, who is domiciled in South Africa, informing employees that the business was no longer viable.

It was revealed to the workers that a board resolution had been reached to the effect that they no longer have any other option than to close and file for bankruptcy and liquidation thereon.

"In the same announcement, Bones told the employees that any concerns from them must be directed to the human resources manager who would then direct them to him and shareholders for clarification.

"Employees forwarded their list of concerns through the aforesaid channel. Major pertinent issues were never responded to, which then obliged the employees to send the same concerns direct to the shareholders but there has been no response," said a source at the company.

Employees are eager to know if they would be paid their retrenchment packages.

If the company is to go into liquidation, the employees would be entitled to terminal benefits accrued to them during the course of employment such as outstanding salaries and leave days due, among other benefits.

Normally, a retrenchment package is given when a going concern no longer requires the services of a particular employee or group of workers.

The employees said on January 8, 2014 UMB went into a Scheme of Arrangement in a bid to ride out of the crisis.

After getting into partnership with PandL (Pty) Limited of South Africa, UBM became known as UBM-PandL (Private) Limited, with the majority shareholder virtually taking over the day-to-day management of the business.




It is said that the major shareholders - Andre Prinsloo, Eduard Prinsloo and Himal Patel - cascaded the management function to Bones and financial director Charles Gambe who then left the organisation early 2017.

Upon Gambe's departure, the finance function was bestowed on finance manager, Glenda Elizabeth Dos Santos.

The Scheme of Arrangement was, however, set-aside on June 18, 2018 by the High Court through an application by one of the parties to the arrangement.

Before it went into the arrangement, UBM had 14 branches in Harare, Bulawayo, Kwekwe, Gweru, Gokwe, Chegutu, Chiredzi, Mutare, Rusape and Karoi.

But by December 2017, all the branches had closed with the exception of Gweru, Harare Timbers – Truss Plant and Graniteside, which had since relocated to Msasa.

Sources said since the start of 2018, business has not been forthcoming due to the fact that the company had not been replenishing stocks hence very minimal sales which hampered entail unsustainable cash flow levels.

"A preview of the whole script on how the company has been functioning compels the employees to believe that the downfall of the company was pre-planned because 90 percent of items which came from PandL South Africa as investment were evidently taken down from their shops' shelves as some were rusty and had rand price tag stickers on them.

"Majority of electrical items, window frames and damp course were not even compliant with Zimbabwean architectural requirements. This is enough evidence that they were getting rid of obsolete stocks in their South African shops.

"Electrical gadgets were soiled to an extent that it's easily recognisable that they were faulty hence returns from customers. It implied these products were not saleable. Local business had to depend on buy-outs in order to realise some meaningful sales," said a company source.

"Instead of expanding as hinted on the agreed Scheme of Arrangement closing of branches became the norm for the past four years of the partnership thus conclusively have to put up with two branches at the end; Harare and Gweru."

UBM Liquidation Doors

Source: Daily News

Comments

Latest News

Chamisa opens up on Monetary Policy Statement

by Mandla Ndlovu | 21 February 2019 | 5 Views

RBZ's interbank forex policy failed miserably in 2008 - Just in case f...

by Colls Ndlovu | 21 February 2019 | 1 Views

NetOne donates to ZRP

by Simbarashe Sithole | 21 February 2019 | 1 Views

ZANU PF only listens to violent rebellion! - The recent violent protes...

by Peace Chiwara Marangwanda | 21 February 2019 | 1 Views

Zhuwawo spills the beans on Mugabe,Chiwenga and Sekeramayi

by Mandla Ndlovu | 21 February 2019 | 1 Views

Mnangagwa's sincerity sways EU

by Mapozho Saruchera | 21 February 2019 | 1 Views

Robert Mugabe a hero and a true patriot

by Dr Masimba Mavaza | 21 February 2019 | 1 Views

'Dzamara has a fake degree'

by Mandla Ndlovu | 21 February 2019 | 6 Views

Two MDC officials released from military custody after heavy torture -...

by Mandla Ndlovu | 21 February 2019 | 4 Views

Chamisa accused of manipulating MDC structures

by Staff reporter | 21 February 2019 | 1 Views

Mangudya is a thief, he has devalued people's salaries

by Staff reporter | 21 February 2019 | 5 Views

Mnangagwa's Zanu-PF, govt ignore Mugabe - PRESIDENT Emmerson Mnangagwa...

by Staff reporter | 21 February 2019 | 1 Views

Chamisa to address Gweru 'Thank You' rally

by Staff reporter | 21 February 2019 | 1 Views

Dynamos race against time

by Staff reporter | 21 February 2019 | 1 Views

Lupane State University moves to ease students accommodation woes - LU...

by Staff reporter | 21 February 2019 | 2 Views

MSU student to lead continental body

by Staff reporter | 21 February 2019 | 2 Views

Chitungwiza mayor, deputy resign - Chitungwiza mayor Gift Tsverere and...

by Staff reporter | 21 February 2019 | 5 Views

No govt plans for Mugabe's 95th birthday

by Staff reporter | 21 February 2019 | 1 Views

Bulawayo has no title deeds to City Hall, Tower Block

by Staff reporter | 21 February 2019 | 1 Views

ZANU PF Youths celebrate Mugabe's birthday

by Mandla Ndlovu | 21 February 2019 | 5 Views

Mawarire, Mutasa dockets merged

by Staff reporter | 21 February 2019 | 1 Views

Zanu-PF knives out for Kazembe Kazembe

by Staff reporter | 21 February 2019 | 1 Views

Zimbabwe left with one week's supply of bread flour - ZIMBABWE is left...

by Staff reporter | 21 February 2019 | 1 Views

Nyarota's lawyer fined for negligence

by Staff reporter | 21 February 2019 | 1 Views

Sadc, EU positions on Zimbabwe: Attempting an end of history - Last we...

by Takura Zhangazha | 21 February 2019 | 1 Views

'Declare civil imprisonment unconstitutional' - A HARARE woman, who wa...

by Staff reporter | 21 February 2019 | 5 Views

'Political hand in Chitungwiza town deputy mayor trial' - FORMER Chitu...

by Staff reporter | 21 February 2019 | 1 Views

Mawarire wants treason charges tossed

by newzimbabwe | 21 February 2019 | 1 Views

Entertainment

TinTin suffers mental illness scare

by Mandla Ndlovu | 19 February 2019 | 3944 Views

Bulawayo artiste blasts Mnangagwa - BULAWAYO artiste Njabulo "SizFire"...

by Staff reporter | 18 February 2019 | 608 Views

Jabu features in nasty indecent tape - Studio 263 actor Jabu (real nam...

by Staff reporter | 18 February 2019 | 1316 Views

Omkhula lament lack of arts promoters in Zimbabwe

by Staff reporter | 17 February 2019 | 1000 Views

'Bulawayo artistes more popular outside Zimbabwe'

by Staff reporter | 17 February 2019 | 862 Views

Sex makes Zodwa Wabantu fat

by Staff reporter | 17 February 2019 | 3182 Views

HIFA 2019 cancelled

by Mandla Ndlovu | 15 February 2019 | 734 Views

WATCH: Jah Prayzah and Misred drop Kunerima video

by Mandla Ndlovu | 12 February 2019 | 5443 Views
iBlog

Ios 9 Features Inspired By Android

apple announced ios 9 on monday, and while watching the keynote, i had just a little bit of déjà vu. most of ios 9's new features seem to be squarely aimed at apple's biggest rival in mobile: android. specifically, they were about catching up to ... Read More
Sergey 13 June 2015 ago

Tb Joshua Worst Enemy Angelique Tonge Exposed

About two years ago, we came out emphatically about those behind the t.b joshua watch. many were those who thought we were framing innocent people up or on a witch hunt. some events have vindicated us and the cat is out of the bag. it is said that no... Read More
pointblank 01 May 2015 ago