…workers and suppliers left in a lurch as directors strip company assets, pocket millions and vanish

Rutendo Chirume

In a brazen case of corporate malfeasance, directors of the once thriving family-run Bilcro Investments, a hardware and wholesale empire, have stripped the company of its assets and retreated to Marondera, leaving behind a pool of distressed employees and suppliers, EnviroPress has learnt.

The now beleaguered family-owned business, which used to run over 20 wholesale and hardware shops, is currently under corporate rescue proceedings.

The company’s remaining shop situated along Greenfied Street in Masvingo operates with only 10 employees who are paid quarter salaries per month or less, after 20 more were placed on unpaid leave.

The employees, who are owed salaries dating back to over a year ago, allege that the company’s directors, Richard Billing (pictured) and his son Jason, orchestrated a calculated scheme to strip Bilcro of its assets before declaring insolvency.

Read more: Bilcro suffers US$5000 loss after flooding of shop

The aggrieved employees told EnviroPress that through a shelf company called Rexmark, Jason has taken over and rebranded the Gwanda branch, and has bought, at giveaway prices, Bilcro’s business stands at Murambinda Growth Point.

Rexmark has also taken over a Liquefied Petroleum Gas (LPG) business contract which Bilcro Investments had with BOC gas company.

“They literally sold some of the properties to themselves, with Jason gobbling up all the business stands at Murambinda. I think that was either unethical or unlawful or both,” said one employee.

 Jason, through his company Rexmark, is one of the suppliers owed money by Bilcro Investments, according to information supplied by the sources.

The employees allege that the Billings, without little or no regard for suppliers and employees, have pocketed the bulky of the money raised from the sale of company houses, business stands, shops and vehicles.

Employees were last paid full salaries in August 2024, and suppliers like Makoro Tank Technologies have reportedly instituted legal proceedings against the Billings.

Bilcro Investments reportedly owe the Botswana-based Makoro Tank Technologies tens of thousands of dollars for water tanks that were supplied but never paid for.

Bilcro’s Chiredzi shop was reportedly sold for US$67 000 which the company plans to use to pay some creditors.

Employees, however, claim that father and son acted dishonestly by disposing much of the company’s assets ahead of proceedings for bankruptcy protection to try avoid sharing proceeds from the sales with employees who are owed salaries.

“When they realized that the business was failing, they hatched a plot to shortchange us by disposing company properties and pocketing all the proceeds by themselves. They then applied for corporate rescue status, and they continue selling the residual properties left but salary arrears dating back to August 2024 are not being cleared,” said one aggrieved employee.

Although a notice on the commencement of corporate rescue proceedings states that workers would keep their jobs, EnviroPress was informed that most of them were later forced onto unpaid leave.

“You are hereby notified that the Board of the Company adopted a resolution on 8 July 2024 in accordance with section 122 (1) of the Insolvency Act [Chapter 6:07], that the Company voluntarily commences corporate rescue proceedings. The Board further resolved to appoint Mr Tapiwa Chizana as the corporate rescue practitioner and he consent to such appointment in terms of Section 122(3)(b) of the Insolvency Act.

“The resolution to place the Company under corporate rescue was filed with the Master of the High Court and the Registrar of Companies on 10 July 2024 in terms of Section 122(2)(b) of the Insolvency Act. Accordingly, the effective date for the Company’s corporate rescue proceedings is 10 July 2024,” reads part of the notice which is dated July 15, 2024, and is signed by Chizana.

Other employees called for government to investigate the Billings for possible illegal externalization of money realized from the sale of company properties to New Zealand and South Africa where the Billings have extended family relations, and where the elder Billing has considered relocating.

While the elder Billing did not respond to questions sent to him, his son Jason provided a curt response, suggesting they were no longer in control.

“You can talk to whoever is running the company at moment, we have no comment,” he said.

Meanwhile, the Billings were scheduled to meet with creditors on 15 May in Harare to map the way forward in face of the impending liquidation of the business.

“It is anticipated that the company will be wound down, and any new investors will purchase the residual inventory and trade under a different legal entity. We are still to reach an agreement with employees on how to safeguard their interests as part of this informal winding down process, and give them a better return than would be the case under liquidation,” reads part of the notice to the creditors meeting.

In the notice, the Billings blame informal traders for the stricken business’ downfall.

“The operating environment has remained difficult as the entity has been experiencing tight competition from the unregistered informal sector that has flooded the hardware market which in turn has resulted in the entity having to reduce its selling prices of the hardware products with little or no room for a similar adjustment in the cost structure.

“In a bid to remain competitive by reducing the selling prices of the products, the entity has been incurring significant losses which will only worsen the initial situation and the organisations ability to pay creditors in the near future.”