Monday 2nd July, 2018 –Leewind paints has closed its doors temporarily as the company struggles to meet its salary obligations to employees.
In a letter to employees written by Chairman and Managing Director, Hugh Marshall Sr. and dated 29th June, 2018, members of staff were informed that salaries for May remain outstanding and there was no possibility of finding monies to pay June’s salary.
The letter outlined that in February and April, government, which is a shareholder in the company assisted in the payment of salaries, but they are unwilling to intervene this time due to an agreement signed in October of 2014.
The agreement allowed for the two majority shareholders Renee Phillips and Cosmos Phillips Jr. to transfer shares to the government in exchange for tax write off. The move would have made the government majority shareholder in Leewind Paints.
But more than three years after the agreement, the Phillips have allegedly not transferred the shares. This has lead to the closure of the paint company as of 29th June, 2018, until further notice.
The letter details that without the transfers, the company is unable to raise funds even from the bank, “as the auditors are unable to certify the transaction and make such report.”
The company’s chairman and managing director has apologized for not adequately notifying members of staff of the closure, informing them that “the arrears to salary will now stand at two months plus one month in lieu of notice.”
Weekly paid workers are now owed for three weeks, in addition to one week in lieu of notice.