Popular men’s suiting and shirting brand Reid & Taylor has had to shut down its Mysore factory due to lack of orders, sales and demand, leaving hundreds unemployed.
The company was already under the National Company Law Tribunal liquidation due to huge losses incurred in the past years.
With a severe lack of working capital to keep the operations running smoothly, the company had no choice but to relieve all employees and shut the factory.
Ravi Shankar Devarakonda, the liquidator for the company, sent out a notice to all employees declaring the decision, which read, “In the meeting held on 5 May, the challenges faced by the company were discussed with the stakeholders (financial creditors) and it was concluded that there was no option but to permanently shut down the operations of the plant and to discharge all workmen and employees.”
He also relayed that despite best efforts to operate the company as a going concern for 14 months since the process of liquidation started, he could not keep the factory open due to the unforeseen circumstances.
Founded in 1839, Reid & Taylor started operations in India under S. Kumar Nationwide Limited in 1998, also when the Mysore plant was set up.
Actor Amitabh Bachchan has also been an ambassador for the brand previously.
