Business / Local
John Love Motors shuts down
11 Jul 2014 at 08:47hrs | Views
JOHN Love Motors in Bulawayo yesterday closed shop after operating in the city for about 40 years amid indications the company has been facing financial difficulties.
When a Chronicle news crew visited the garage yesterday, some of the equipment was being dismantled.
It was not immediately clear where the equipment was being taken to.
An employee who declined to be named for fear of victimisation, said company owner Ashton Ndlovu addressed them in the morning and informed them of the closure.
"We were addressed in the morning and were told that the company was not performing well and was closing down," he said.
Ndlovu declined to comment.
"Who told you that? Go to that person for details," he said curtly.
Dejected workers were seen filling in pension claim forms. They said Ndlovu, who is based in Harare, had been relocating some of the company's assets to the capital for some time.
"Some company assets like vehicles were moved to Harare last month.
"We thought the company was moving to Harare," said one of the workers.
The number of affected employees could not be immediately established.
John Love Motors was once the sole Isuzu dealer in the southern region servicing the Midlands, Masvingo and the two Matabeleland provinces.
The company reportedly lost the Isuzu franchise in 2008 and has been facing financial challenges.
A number of companies have closed in the city in recent years leaving thousands of people unemployed.
Affirmative Action Group founder member, Sam Ncube, said it was worrying that Bulawayo companies were continuing to close down and proposed an urgent business indaba to come up with ways of stopping the trend.
"People with problems should come up with solutions.
"We must take action. Business people must not just give up," said Ncube.
In a bid to save ailing industries, the government has come up with the Distressed Industries and Marginalised Areas Fund (Dimaf) which, however, is not enough to meet the financial needs of companies.
When a Chronicle news crew visited the garage yesterday, some of the equipment was being dismantled.
It was not immediately clear where the equipment was being taken to.
An employee who declined to be named for fear of victimisation, said company owner Ashton Ndlovu addressed them in the morning and informed them of the closure.
"We were addressed in the morning and were told that the company was not performing well and was closing down," he said.
Ndlovu declined to comment.
"Who told you that? Go to that person for details," he said curtly.
Dejected workers were seen filling in pension claim forms. They said Ndlovu, who is based in Harare, had been relocating some of the company's assets to the capital for some time.
"Some company assets like vehicles were moved to Harare last month.
The number of affected employees could not be immediately established.
John Love Motors was once the sole Isuzu dealer in the southern region servicing the Midlands, Masvingo and the two Matabeleland provinces.
The company reportedly lost the Isuzu franchise in 2008 and has been facing financial challenges.
A number of companies have closed in the city in recent years leaving thousands of people unemployed.
Affirmative Action Group founder member, Sam Ncube, said it was worrying that Bulawayo companies were continuing to close down and proposed an urgent business indaba to come up with ways of stopping the trend.
"People with problems should come up with solutions.
"We must take action. Business people must not just give up," said Ncube.
In a bid to save ailing industries, the government has come up with the Distressed Industries and Marginalised Areas Fund (Dimaf) which, however, is not enough to meet the financial needs of companies.
Source - chronicle
