Management of Hong Kong-based apparel manufacturer Kwun Tong Apparels is trying to sell off the unit inside the Adamjee Export Processing Zone, thanks to the fallouts of the coronavirus pandemic.
According to media reports, which cited Chairman of Must Garment Corporation (Kwun’s sister concern), Sanjeev Tikam Mahtani, he has invested US $ 50 million in the Kwun factory, which employed over 6,000 workers (who were offered various facilities), since its inception in 2006.
However, subsequent to accumulation of losses on account of the fallouts of the coronavirus pandemic, the management is now trying to sell the EPZ unit.
I am looking for potential investors who can buy my factory, reportedly, underlined Sanjeev Tikam Mahtani speaking to the concerned news daily while adding that he has been doing business in Bangladesh over the last 40 years but never faced such a crisis, and further went on to maintain that he had to face order cancellations in large quantity while also dole out significant discount to some buyers.
If one retailer had to be provided a discount of US $ 25 million, another US-based retailer cancelled work orders worth US $ 20 million, the report maintained.
Accumulation of such losses has now become difficult to bear, reportedly, said Sanjeev, who has a second apparel manufacturing unit in Bangladesh.