Bread making firm - Lobels- faces closure

The once vibrant bread-making firm, Lobels Holding is said to be on the brink of collapse as most of its confectionery equipment and vehicles have been attached owing to unspecified amounts of money owed to creditors.

The bread-making firm, has been facing several challenges leading to the slump in production from 400 000 loaves per day in 2004 to current levels of less than 2 000 loaves per day.

Impeccable sources say the company's properties have been attached, owing to the failure by the firm to pay back loans amid allegations of misappropriation of funds.

Contacted for comment, Lobels Managing Director, Mr Cydwell Chitehwe described the attachment of the company's property as a media talk and insisted that the company is fully operational.

Meanwhile, the firm's Resident Director, Retired Brigadier David Chiweza chose to talk about the temporary closure this Monday following the failure of the company's boiler.

Sources close to the firm said production levels are very low. The same sources said the Commercial Bank of Zimbabwe and Metropolitan Bank are some of the banks that are owed money.

They company's management is said to have arranged for a meeting this Monday afternoon with a local commercial bank in a bid to unlock funding to kick-start production.

The company has been engaging possible partners towards recapitalisation since last year.

Market analysts believe the firm's market value ranges between US$15 to 20 million.