Archer Lays Off Workers

Archer Lays Off Workers
Published: 2016 June 10 04:34:27 (824 Views)
ARCHER Clothing has trimmed its workforce by 200 to 400 citing lack of orders locally and tight competition on the export market.

The resuscitation of the Bulawayo-based firm by Paramount Garments in 2014 saw Archer increasing its workers from 200 to 600 last year.

Paramount Garments managing director Jeremy Youmans told Business Chronicle they had scaled down operations due to lack of orders.

“We’ve shut down the second production line and thus reducing our workforce to 400 from 600. This is due to lack of orders locally and tight competition on the export market because our costs of doing business are very high. We can’t match the competition on the export market,” he said.

Following its revival after injection of a $3,5 million investment into Archer, the clothing firm resumed exporting to South Africa and Germany.

“As part of the Archer revival plan, we invested about $3,5 million, which money we also used to set up a second production line. We hope to re-open the second production line once we receive increased orders probably before the end of the year,” said Youmans.

Archer Clothing was taken over by a Harare-based company, Paramount Garments at a time when it was battling operational constraints that saw it being placed under judicial management in 2010 due to shortage of working capital.

As a result of the operational constraints Archer went through before being taken over by the new investor, the firm laid off dozens of its workers.

Negotiations for the takeover deal started in 2013 when Archer and Paramount entered into a Cut-Make Trim arrangement.

Under the deal, Paramount Garments assisted with labour and clothing material while Archer provided working space.

Archer Clothing needs about $5 million capital injection in the long-term to refurbish its properties, machinery, human resources, working capital in stocks and debts.

Archer Clothing was established in 1953 and was among the largest garment manufacturers in Zimbabwe before its collapse.



- Chronicle
Tags: archer, industry, Bulawayo, ,
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