Lexus had promised to inject more than $150 000 to revive production.
The company’s judicial manager Chrispen Mwete of C Mwete and Company told NewsDay in an interview last week that Lexus, which is one of the biggest stationery retail outlets in Francistown, Botswana, had pulled out of the deal.
“The Botswana firm, which had promised to inject some funds to revive production at Marvo developed cold feet before signing the documents and we don’t know why they did that,” he said.
“However, it’s not all gloomy because there is a local company that wants to do something for the company, but I can’t disclose much because the discussions are still underway. It’s something in the pipeline.”
Marvo Stationery was placed under judicial management in September 2014, as it struggled to settle a debt of about $2,5 million accrued after failing to pay its creditors and a huge wage bill backlog.
Under the deal, the Botswana company was set to supply raw materials and Marvo would manufacture the stationery and sell and in turn the investor intended to have part of their payment in cash or goods.
The Botswana firm had already secured a credit facility for the purchase of 90 tonnes of newsprint and 30 tonnes of bond paper and hard paper covers at a cost of $132 000, with the company further pledging to inject an additional $18 000 as working capital to resume operations.
Marvo was established in 1966 and at its peak it used to employ more than 500 workers.
Currently, it has a workforce of 200 which has been sent on unpaid leave.
News Day