In September, the company was placed under corporate rescue under Oliver Mtasa of Crowe Advisory (Private) Limited (OMCAPL) after it became technically insolvent following years of poor financial performance.
As of the end of August, the firm had net liabilities of approximately US$12 631 411, against total assets of US$6 071 723.
In a statement yesterday, OMCAPL said the closure of the wholesaler came into effect at the start of the month.
“This notice serves to advise that with effect from November 1, 2023 to November 30, 2023, all Metro stores across the country will be closed for the following reasons: stock takes, branding, restructuring, restocking of stores, systems upgrade, and renovation and rebranding of stores,” OMCAPL said.
“This follows the resolution of the creditors at a properly constituted meeting held in terms of section 143 of the Insolvency Act on the 1st of November 2023 to adopt the corporate rescue plan bringing in a new investor.”
Speaking to NewsDay Business, OMCAPL corporate rescue assistant practitioner Raymond Sibanda said the resolution to close was passed by 98,25% of affected creditors and a new investor called Sub-Sahara Capital Group (SSCG).
“A new investor called Sub-Sahara Capital Group will inject US$13,5 million into the company. The investment into Metro Peech will cover working capital and payment of creditors, Sub Sahara Capital will be the majority shareholders,” Sibanda said. Newsday
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