It is common cause that since 27 March 2020 no income has been generated.
The financial position of Phumelela has severely impacted upon us in that they are unable to supply us with any working capital.
Their SENS announcement of 4 May 2020 makes it abundantly clear that either voluntary liquidation which would have disastrous consequences for the industry, or the preferred route of business rescue, will have to follow shortly.
Resultant herefrom, the Board of Kenilworth Racing will have to consider measures to protect the company.
This is not just about Kenilworth Racing.
Gold Circle are going to post significant losses and will also have to review their position.
Phumelela’s situation is well documented and as already highlighted.
Unless government gives us the green light to recommence racing behind “closed doors” very soon, thousands of jobs will be lost, and sadly horses are, and will continue to be, euthanized in numbers.
As far as our staff is concerned, most employees are not required to return to work until further notice and have effectively been furloughed, bar essential staff such as those who are involved in the maintenance of racetracks and training centres.
We are led to believe that these measures have been implemented in all Phumelela regions. UIF benefits are available and will be implemented by KR management although this will only result in partial relief for some employees.
Whilst it must be empathized that this is not retrenchment, management has no alternative but to review all its operations and costs structures immediately.
We are doing our level best under exceedingly stressful and trying circumstances.
- Statement obo the board of Kenilworth Racing (Pty) Ltd on 6 May 2020
