Malek Spinning Mills’ Denim Unit to Close Amid ‘Instability’ – Sourcing Journal

Bangladesh denim mill Salek Textile—previously Titas Spinning and Denim Agency Restricted—will shut on Dec. 31, Based mostly on a current report from The Enterprise Regular.

The mill’s mother or father company, Malek Spinning Mills Restricted, cited the unit’s “instability” As a Outcome of the rationale for its shuttering, noting that it’s been underperforming since its inc…….

Bangladesh denim mill Salek Textile—previously Titas Spinning and Denim Agency Restricted—will shut on Dec. 31, Based mostly on a current report from The Enterprise Regular.

The mill’s mother or father company, Malek Spinning Mills Restricted, cited the unit’s “instability” As a Outcome of the rationale for its shuttering, noting that it’s been underperforming since its inception in 2014. Its efficiency, coupled with the constructing’s expiring lease, prompted the closure. The company will promote Salek’s belongings to Repay its liabilities, and managing director A Matin Chowdhury informed the publication that staff’ salaries have been paid.

Malek Spinning Mills launched in 1991 and went public virtually 20 yrs later in 2008. It sources cotton from the U.S., and exports its yarn to attire retailers Throughout the globe.

Chowdhury informed The Enterprise Regular that denim exports suffered Over the previous two yrs As a Outcome of of Covid-19 pandemic. And whereas knowledge from the Commerce Division’s Office of Textiles & Apparel (OTEXA) indicated that U.S. imports from Bangladesh fell 11 % in worth On The prime of final yr, the nation is slowly bouncing again in 2021. Recent commerce knowledge from Bangladesh reveals thOn the South Asian nation dispatched $18.8 billion worth of attire exports Inside The primary seven months of the yr, redeclareing its place as the second largest clothes exporter Aside from China. In contrast with The identical interval in 2019, Bangladesh underperformed by 7.7 %, and numbers are anticipated To say no as quickly as as quickly as extra As a Outcome of of Covid-19 delta variant’s influence on shipments from South and Southeast Asia.

In April of this yr, Salek Textile was further set again by A hearth at its amenities, regardless of receiving funds from an insurance coverage declare.

Malek Spinning’s share worth took Worthwhile on Sunday after information of the closure went stay on the Dhaka Inventory Trade (DSE) internet website, however have since stabilized.

Source: https://sourcingjournal.com/denim/denim-mills/malek-spinning-mills-denim-salek-textile-titas-bangladesh-closure-319947/

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