Cotton Printers (CP), a textile mill, which is a wholly owned subsidiary of Kingdom Meikles Limited (KML) has filed for liquidation. Chairman of CP said the ailing textile company had been affected by the severe harsh economic environment.
CP is a major producer of bed sheets in the country and employed around 300 people. The workers had applied for judicial management saying that the company had potential to turn around, but the company countered by saying that it was beyond resuscitation.
The Chairman of the company added by saying that, the company was also bankrupt and unable to generate adequate revenue to service its financial obligations to creditors and also that the business is undercapitalized.
CP at one time had spinning, weaving and dyeing fabric divisions. The weaving and finishing divisions were closed around two years back and its assets were put up for sale. The spinning division had been operating profitably until the opening up of the economy.
The workers union had observed that, with a fresh capital injection of US $1.5 million, the company would be able to achieve profits between 2009 and 2011. A report by the union reveals that the company can be revived through the injection of fresh capital.