While admitting operating below capacity, management of textile firm, Tri-star which was established under African Growth and Opportunity Act, has vehemently denied the reports of company's collapse.
Management said that company has scaled down its operations due to operational and logistical reasons and full production level will resume in a few weeks time.
Meanwhile, Government is to take over the unit as decision to the same effect was taken in a meeting between President Museveni, Finance Minister Ezra Suruma and other officials.