Companies

Garment major Reid & Taylor India shuts down its factory near Mysuru

Anil Urs Bengaluru | Updated on May 20, 2020

Reid & Taylor Showroom

Garment and fabric company Reid & Taylor India Ltd (known as RTIL), which was under NCLT liquidation, has closed down its factory near Mysuru affecting several hundreds of employees.

“(During) the meeting held on May 5, the challenges faced by the company were discussed with the stakeholders (financial creditors) of the company and the conclusion reached was that there was no option but to permanently shut down the operations of the plant and to discharge all workmen and employees,” Ravi Sankar Devarakonda, the liquidator for RTIL, said in a notice of discharge to the employees.

RTIL’s factory is located in Nanjangud, about 20 km from Mysuru. Devarakonda, in a note to employees, said the company had no sale orders to execute any more which led to continuous losses. The company also did not have any working capital to keep the operations active.

“I have made the best possible efforts to run the company as a going concern for over 14 months since the commencement of liquidation but regret to inform that now I have no other option than to discontinue the business operations,” he told the employees.

To discontinue business operations, the liquidator said the ongoing job work arrangement has been discontinued by RNT Distributors Private Limited, There were no sale orders on hand as on date.

The company continues to incur losses at EBITA level. The electrical supply has been discontinued to the company due to non-payment of dues.

The factory closed all its operations on May 14 and relived all its employees from services. Pending dues for the liquidation period and the full and final payment to be paid to employees and workmen is being dealt with accordance with the provisions of the code.

Published on May 20, 2020

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor