Shutting down

National Foods succumb to debt

National Foods has revealed that it will shut down tomorrow after the company’s failure to settle debts it has with foreign suppliers.

Garikai Fadzi

In a letter dated 3 December 2018, the company said, "Due to delays in repatriating payments to our foreign wheat suppliers, our wheat suppliers have today instructed National Foods to cease draw down of wheat stocks. National Foods will mill out the wheat in process and we anticipate both our mills in Harare and Bulawayo on Wednesday 5th December."

Chief Executive Officer, Mike Lashbrooke told zifmnews.com that most of the company’s foreign wheat suppliers have not been paid.

“I can confirm we will be shutting our mills tomorrow morning as our foreign wheat suppliers have not been paid. We are working with RBZ to try to unlock payments so that production can continue. We have a pipeline of wheat in stock and will be able to restart once payment is made.”

The company also warned that baker’s flour is expected to run out this week.  National Foods is the producer of a number of household items, which include the following ranges: Red Seal, Gloria, All Gold, Koo, Tastic and Safco.National Foods will, tomorrow shut down its mills after non-payment of foreign wheat suppliers.

 

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