Hundreds left unemployed as underwear company undergoes liquidation
Over 700 employees are now jobless due to the company's move.
“I was absolutely devastated.”
These were the words of a disheartened Playtex employee, Rita Fuller who is one of hundreds of employees who were left jobless when the 60-year-old underwear manufacturing company announced, via SMS and email, that is was undergoing liquidation.
“We were on holiday during December and were under the impression that we would return to work in January, as per usual. It came as a shock when we received messages on Friday, January 7 from Hanes South Africa Pty (who own Playtex), that the company was being liquidated. We had no idea what was going on. Upon our inquiries, there were also talks that we would return to work for a short time but that hasn’t happened. We noticed that people in top positions were resigning but we didn’t understand why. Nothing was explained to us. Our contact details were also taken down and updated before we closed which I assume was to ensure we get the SMSes. To this day we still have no proper answers.
“My initial reaction was disbelief because I wasn’t sure if the message was real. It was only until recently that it sunk in that I would not be returning to my job of 20 years. I couldn’t help but break down in tears,” said a 50-year-old Fuller who worked as a machinist at Playtex. Fuller said that she received one payment in January, which she said was for the last week she worked in December.
She is one of over 700 employees who is now left jobless due to the company’s move.
In a statement, released by Hanes South Africa’s PR team, the company said: “After careful consideration, the board of HSA has decided to file for creditors voluntary liquidation as it believes this will be the best outcome for staff and other affected parties. The decision to file for liquidation follows the placing in business rescue of a major client of the business, as well as the ongoing poor economic conditions in South Africa, which have been exacerbated by the impact of Covid-19.
“We are committed to ensuring our employees are treated fairly and that they will receive all termination rights in respect of South African labour laws.
“All activities are suspended with immediate effect and our premises at Lawley Street 101, Durban are closed until further notice. A liquidator is expected to be appointed by the middle of January. HSA will update affected parties as additional information becomes available.”
