Al-Haj Textile Mills shuts factory for indefinite period

Staff Correspondent | Published: 00:00, Oct 10,2019

 
 

Al-Haj Textile Mills, a company listed on the country’s stock exchanges, has shut down its factory for an indefinite period after extension of lay-off period for five times.

The management of the company made the decision to close the factory from October 8 due to non-improvement of market situation of yarn sales.

The company on Wednesday informed the Dhaka Stock Exchange and the Chittagong Stock Exchange that due to non-improvement of the market situation of yarn sales, the management had made the decision of closing the mill.

The company also retrenched the staff and workers of the mill as per Bangladesh Labour Law section 16(7) & 20(2) (KA), it said.

The company also informed that the mill would reopen subject to improvement of the market situation.

Al-Haj Textile Mills kept its factory shut for 30 days between June 25 and July 24 for a severe fall in the volume of sales as a result of lack of demand in the market and shortage of storage facilities for holding stock of finished goods in the warehouse and also severe blockage of working capital.

After that the textile company extended the lay-off four times in 15 days each, which ended on October 7. The factory of the company remained shut in 115 days in total.

Meanwhile, market regulator Bangladesh Securities and Exchange Commission on September 12 sent shares of Al-Haj Textile Mills to the spot market from the public market.

Despite the closure of its factory, share prices of Al-Haj Textile Mills had rose that prompted the DSE to investigate the matter.

In July, the DSE reported the commission about some irregularities by the company and informed the regulator that its director Shamsul Huda sold 20,000 shares of Al-Haj Textile Mills without declaration.

The BSEC froze entire shares held by Shamsul Huda in the company.

The BSEC found that Al-Haj Textile Mills’ price sensitive information that the company had received Tk 5.58 crore from Agrani Bank was not true.

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