NYANGA - Village Inn Hotel has successfully applied for judicial management with the High Court in a move the company said would protect it from its major creditors after failing to service them citing viability constraints.

The hotel has a staff compliment of 30 employees will be managed Cecil Mudondo of Tudor House Consultants (Pvt) Ltd.

‘’We would like to advise that Village Inn (Pvt) Ltd was placed under Provisional Judicial Management through a High Court Order Case No- HC169/15 on the 21st of January 2015 and Cecil Mudondo was appointed the Provisional Judicial Manager in terms of Section 32 of the companies Act Chapter 24:03,’’ stated the hotel in a memorandum dated 26 February addressed to its workers.

The hotel further indicated that the harsh economic climate prevailing in the country made it uncertain as to when the company would revert back to normal operations.

‘’Due to the uncertain investment climate in the country, we are not able to anticipate how long it maybe before this climate improves,’’ reads Madondo’s memorandum to the employees.

The company however, did not mention its operational challenges and could also not divulge in how much it owed creditors.

Its Human Resource Manager, Margret Chitsikwe declined to comment saying she was not allowed by the company policy to do so.

According to the Zimbabwe Catering and Hotel Workers Union (ZCHWU) Eastern Regional Officer, Eliah Mwandipe the hotel its  workers a accumulative debt of $155 000 in salary arrears accrued since 2009 when the country introduced the multi-currency regime.

‘’It was brought to the union’s attention that the hotel as a turnaround strategy engaged a Judicial Manager. Usually that is the procedure when a company finds itself in an operational predicament. As a union we are closely monitoring a stake for the workers and I can confirm that sometime in April we are going to the High Court to register our claim for workers in various amounts they are owed by the company,’’ said Mwandipe.

Village Inn’s placement under judicial management comes at a time the hotel industry is dwindling in the Eastern Highlands with employers citing acute operational constraints.

Mounting sad developments within the sector are so much that the once prestigious Wise Owl Motel in Mutare recently terminated operations following the closure of the exquisite Penhalonga- based hotel, La Rochelle in January this year.

Other Long-established hotels in the area such as the Christmas Pass Hotel, Chimanimani Hotel and Mt View Hotel have also been singing the blues, citing a difficult operating business environment.