$4m needed to save Perfect Bakery

HARARE – Troubled bread maker, Perfect Bakery which is currently under provisional judicial management requires about million to get back on track.

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bread

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In an interview, the bakery’s judicial manager Cecil Madondo of Tudor House Consultants told The Zimbabwe Mail last week that preliminary assessments indicated that the company required m working capital in the short term and about ,3m to return to full production and capacity.

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“Purchase of raw materials and other consumables and purchase of delivery vans will cost 0,000.00 while replacement of old machinery and equipment will need ,3 million. The Bakery’s capital expenditure in the medium to long term is to secure land and buildings and this requires 0,000,” he said.

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The bakery, which was formed in 2009 after the introduction of the multi-currency regime before collapsing last year in August due to working capital constraints, owes creditors close to ,5 million as at 31 December 2014.

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It also owes its workers 7,000 in unpaid salaries.

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At peak, Perfect Bakery produced 30,000 loaves each day, and had secured a niche market which it believes continues to exist.

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Perfect Bakery was placed under provisional judicial management on the 15th of October 2014 after which Madondo was appointed the provisional judicial manager at the end of October 2014.

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Incessant liquidity challenges and competition from imported confectionary products have condemned the local bread industry into problems which has seen bread sales dropping from about 1,5 million loaves a day to under 700,000 per day, according to experts in the industry.