New Delhi: With the coronavirus epidemic pushing the financial system right into a recession, an extra blow was dealt to the Indian textile trade with the closing down of the as soon as fashionable Reid and Taylor brand.
The firm, as soon as one of many largest textile manufacturers in India, shut down on May 14, rendering round 1400 staff jobless.
So unhealthy was the corporate’s monetary situation throughout its remaining levels that the electrical energy provide to its manufacturing facility was discontinued because of non-cost of dues. There was insufficient money to run day by day capabilities.
Founded in Scotland in the 1830s, Reid and Taylor was acquired by Indian firm S Kumar’s Nationwide in 1997.
With a manufacturing facility in Mysuru and Bengaluru, it shortly grew to become a particularly fashionable brand all around the nation.
The firm acquired the companies of Bollywood icon Amitabh Bachchan and Hollywood star Pierce Brosnan of James Bond fame.
However, though elevated the brand recognition into the smaller cities of India, it finally turned out to be its undoing.
S Kumar’s, the dad or mum firm of Reid and Taylor India Limited (RKIL), that it led to monetary issues.
In January, Mumbai bench of the National Company Law Tribunal (NCLT) has accepted a bid by an unregistered union of the premium attire brand Reid & Taylor India to take over the agency, stalling liquidation and has posted the matter for additional listening to.
Reid & Taylor, owned by the Kasliwal household-run S Kumar Group, which can also be going through chapter proceedings, owes over Rs 4,100 crore to banks and different lenders. The committee of collectors had on December 14, 2018 determined to go in for liquidation as no decision plan was submitted though it bought eight expressions of curiosity.
Its lenders and monetary collectors embody Finquest Financial Solution which is the biggest with near Rs 800 crore of claims, Union Bank of India, Punjab National BankNSE -1.30 %, IL&FS Financial Services, IDBI BankNSE 0.51 % and L&T Finance and many others.