Nytil, Picfare speak out on ‘winding up’ business in Uganda

Business

Nyanza Textile Industries Ltd (Nytil) and Picfare Industries Limited have broken the silence about reports of winding up business in Uganda.

In documents that made rounds on social media, it was indicated that the country’s oldest textile factory was winding up in a voluntary cessation that followed shareholders’ meetings on October, 25 and December, 2, 2022.

The documents indicate that a special resolution was passed to appoint CPA Ronald Mutumba as the liquidator.

“Take notice that on October, 25, 2022, a special resolution for voluntary winding up Picfare Jinja Limited  and the said company ceased to carry on business except for as is required to wind up the company,” one the documents reads.

The documents also show that Picfare Trading Company Limited, Parkinson Clarke Limited and Southern Nytil Gaments Limited have also wound up.

However, a statement by Richard D Mubiru, the corporate Affairs director at Picfare group of companies said the companies being wound up have been dormant and that by being closed, they are only doing it formally.

“All active group companies like Southern Range Nyanza Limited, Picfare Industries Limited and Henley Property Developers Limited are fully functional and shall remain serving you as always. There is therefore no need to be worried of missing out on any of the group brands and services,”Mubiru said.

The development comes on the backdrop of worries by several sections of the public about the closure of business of the country’s oldest textiles factory.

Nyanza Textitle Industries was established in 1954, by the colonial government as a parastatal company and the independent governments in Uganda ran the factory until 1996 when they sold it to Southern Range Nyanza Limited, the company that runs it today.

Nytil has for long been manufacturing government institutions garments including uniforms for the UPDF.

Picfare started as a basic scholastic materials production factory in 1996.

On the other side Picfare is the leading manufacturer of books in the country as well as other paper products.

President Museveni last year commissioned a  multi-billion new factory that Picfare industries proprietors said cost $12.5million (shs44.5bn) in the Namanve industrial park.

 

 

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