Al-Haj Textile to close mill

FE Report

Al-Haj Textile Mills has taken a decision to close its mill amid lay-off announced several times.

The company has taken the decision due to 'non-improvement' of market situation of yarn sale.

Besides, the company retrenched the staff and workers of the mill with effect from October 08, 2019 as per the labour law, according to a disclosure posted on the website of the Dhaka Stock Exchange (DSE).

Al-Haj Textile Mills has also informed that they will re-open the mill subject to improvement of the market situation.

Following the disclosure regarding closure of the mill, Al-Haj Textile Mills became the worst loser on Wednesday on the DSE.

The company's share price closed at Tk 42.90 each with a loss of 9.87 per cent or Tk 4.70 on the Dhaka Stock Exchange (DSE).

Earlier, on June 25, the company's board of directors decided to lay off the factory for 30 days due to severe fall in volume of sales in the market and shortage of storage facilities for holding stock of finished goods in the godown.

The company also faced severe blockage of working capital.

Later, the lay off periods were extended for several times as there was no improvement in the sale of manufactured yarn.

Al-Haj Textile Mills, presently an 'A' category company, was listed on the stock exchanges in 1983.

The company's sponsor-directors hold 12.78 per cent shares, government 0.03 per cent, institutes 12.97 per cent, and general public 74.22 per cent.

[email protected]