GRANT Thornton Camelsa, Jaggers Wholesalers’ provisional liquidator, is preparing the first interim dividend account as the firm moves in to settle debts following the closure of the wholesaler.
A dividend is declared before a firm’s annual earnings and dividend-paying ability are accurately known by its management. An interim dividend is ordinarily paid in each of the first three quarters of the fiscal year. These payments are followed by a final dividend at the time that earnings can be accurately determined.
Grant Thornton Camelsa manager in charge of the advisory department, Alex Dera, said the company was currently preparing the first interim dividend account and was hoping to pay a final dividend to all creditors by year end.
“We are at various stages of asset disposals and we are currently preparing our first interim dividend account. It is our hope that before year end, all disposals will have taken place and a final dividend will have been paid to creditors,” Dera said.
Jaggers Wholesalers (Jaggers) and its subsidiary Jaggers Trador assets were auctioned in April this year to repay creditors. Jaggers owes creditors over $13 million.
Dera, however, said Jaggers property was at various stages of assets disposal while some of the property had been sold and was at a stage of property transfer.
Jaggers was once one of the leading distributors of fast-moving consumer goods before it was acquired by businessman and farmer Cecil Muderede in 2010. Muderede gained a controlling equity of the wholesale giant after buying out the previous major shareholder, Metcash Africa, a South African company, through his investment vehicle Borlscade Investment (Pvt) Ltd.
Jaggers closed in 2010 when creditors swooped on the wholesaler. Some of its assets were auctioned to offset debts.
At its peak, Jaggers had 52 branches countrywide. The complex has since been taken over by Meikles and expects to open a Pick ‘n’ Pay outlet by the end of the year.