The Zimbabwe Stock Exchange (ZSE) on Friday suspended trading in shares of troubled furniture retailer Pelhams after the company was placed under provisional liquidation. Pelhams was placed under liquidation last week following an application by its shareholders TN Harlequin and another unnamed creditor. The ZSE said the developments at the retailer could affect trade in its shares.
“To that effect, the ZSE has temporarily stopped trading in Pelhams shares pursuant to Paragraph 4.13.2 of the ZSE Automated Trading System Rules and Procedures pending further announcements,” said ZSE chief executive officer Alban Chirume.
“Investors will not be able to buy or sell Pelhams shares during the period the Securities Halt is in effect.” Pelhams share price last traded at 0,0004. Christopher Maswi of Fairvalue Chartered Accountants, who has been appointed the company’s liquidator, said the company would remain “open until the final determination by the High Court on April 6, 2016”.
“The application by TN Harlequin Luxaire Limited to place the company under liquidation followed the refusal by the other shareholders to support TN Harlequin Luxaire Limited’s request to recapitalise the company,” he said.
Pelhams is one of the many companies that took advantage of the July 17 Supreme Court ruling that empowered employers to dismiss employees on three months’ notice to fire over 100 workers.— New Ziana.