RUFARO Marketing says it has reduced its debt to US$5 million from the US$6,8 million since turning its business model to real estate despite facing challenges in collecting rentals.
BY TARISAI MANDIZHA
In 2012, Rufaro Marketing converted into a real estate as its liquor-selling business was loss making.
In an interview last week, Rufaro Marketing finance director Daniel Mutiwadirwa said the retirement of debts to various creditors had been slow as a result of the economic challenges currently obtaining in the country. He said most businesses registered poor performance as a result of subdued local demand, lack of funding for working capital and capital expenditure, retrenchments and closure of companies.
“All these have not spared our new business customers, our tenants. As a result, the business has accumulated a huge debtor’s book of over US$2 million since restructuring and this would have assisted in reducing the creditor’s book. We have since paid US$608 000 of the retrenchment packages.
“We currently owe about US$5 million of the US$6,8 million we owed at the time of changing the business model,” Mutiwadirwa said.
He said the company had leased out 83 of its 86 outlets but rentals were hard to come by.
“The economic challenges in the country deepened during our business transitional period and this compounded our problems, as we had transitional problems to manage. However, we have no regrets about the new direction we have taken. We are happy and we will remain resilient, steadfast and resolute so as to deliver shareholder value,” Mutiwadirwa said.
“Because of the legacy debts which are not fully paid up, we have not been able to fully implement our plans, which include property development as this is a resource-hungry business project.”