Businessman cedes textile firm to workers

Ashwin Singh has told Mmegi Busines that the idea is to have a board that will comprise of five workers while he remains managing director for the next two years before exiting to allow workers to run the firm.In December last year, Microlith announced that it is facing severe cash flow problems which had resulted in over 220 workers quitting after several months without salary.

However, Singh says that while the company is still facing cash flow problems, an option to have CEDA fund the new owners is being investigated."The company is still in a cash flow crisis but negotiations are under way with CEDA to fund the workers once the new shareholding structure is in place. I cannot say much about the negotiations at this time due to the sensitivity of the matter," he said.He added that the change of ownership is in the first phase and the management team will have to train workers on how to run the company.