In South Africa, the Coronavirus is causing a lot of havoc not only on the health of human beings, but it is also affecting the very core of our already ailing economy. We can see a lot of companies dramatically shutting down.
One recent occurrence is the voluntary liquidation of Hanes South Africa, the company which holds the licence to manufacture, sell and distribute underwear under the Playtex trademark in the country and several other African countries.
Credit: jackmac34 via Pixabay
The company that has been running for the past 60 years had to close its factory in Mobeni East. IOL reports that the factory has been shut since early January 2021 and has leftover 700 employees jobless.
Staff members were informed about the unfortunate happening via email and SMS on January 13, that the company was filing for liquidation on 6 January and that all activities were immediately suspended. Employees were paid their salaries and benefits until January 15.
A statement released by Hannes South Africa said, “After careful consideration, the board of HSA has decided to file for creditors voluntary liquidation as it believes this will be the best outcome for staff and other affected parties. The decision to file for liquidation follows the placing in the business rescue of a major client of the business, as well as the ongoing poor economic conditions in South Africa, which have been exacerbated by the impact of Covid-19”.
“We are committed to ensuring our employees are treated fairly and that they will receive all termination rights in respect of South African labour laws. All activities are suspended with immediate effect and our premises at Lawley Street 101, Durban is closed until further notice”.
Hannes South Africa started manufacturing underwear in 1970 at the time it was known as DB Apparel. It became Hannes South Africa in 2016 when the Durban company was acquired by HanesBrands Inc, a global manufacturer, and marketer of underwear, for an undisclosed amount.
Content created and supplied by: Mbuyu-Ana (via Opera News )