EGM at Orient Garments to raise capital and save 4,000 jobs
View(s):Directors of Orient Garments Plc, the only listed garment manufacturer in the Colombo bourse, have called a special general meeting (EGM) of shareholders next week to seek an urgent cash infusion and stave off a major crisis at the 4,000 employees-strong firm
The firm decided to go ahead with a rights issue, first announced on 9th September 2014, and seeking shareholder approval at the meeting on Tuesday January 20. The rights issue at a price of Rs.15 if approved and subsequently fully subscribed could save the firm and the jobs of 4,000 workers, the company said in a media statement. There was no independent verification of its claim.
Company Chief Operating Officer Udeni Abeykoon said the firm enjoys the custom of high profile buyers including giant retailer Tesco, as well as renowned labels such as Dillards, Next, SuperDry, Guess and others who continue to support the company since Adam Investments Ltd wrested management control from the previous major shareholder in a hostile takeover last year.
“We are confident that our shareholders will support this noble cause to safeguard the turnaround of the company and employment of the 4,000 workers,” the CEO explained.
Since the takeover on 8th January 2014, OGL has spruced up its compliance standards, increased the number of machines in operation by 76 per cent – from 1100 to 1940 machines – and carried out an employee skill upgrade initiative resulting in improved efficiency and greater confidence by its highly quality conscious international buyers.
The revamped marketing department has built a strong confirmed order book securing a bright future for the company.
“Since the beginning of last year we have expanded our reach to new markets and added new orders from buyers in Germany and Australia. We just need capital to make good on them. It will help us bring the company back to its former glory and save the jobs of our loyal workers,” she said.