Businessman cedes textile firm to workers

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SELEBI-PHIKWE: The proprietor of Microlith Textile Company has said he is handing over 100 percent ownership of the troubled firm to his 120 workers for free in a deal that could rope in the Citizen Entrepreneurial Development Agency (CEDA) to fund operations of the restructured entity.

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.

Editor's Comment
Women unite for progress

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