It’s not just in the US and Europe, it’s everywhere!
Image Courtesy: proactiveinvestors.co.uk
Coronavirus has caught hold of, and devoured, almost every big and small apparel firm across the globe over the past 4 months.
While we have been talking about many big retailers and apparel firms going insolvent lately, there are many who have got lost in the crowd amidst all the uncertainties and chaos. One such group is the Israel-based innovative tailoring provider Bagir Group Ltd., which has now gone into liquidation.
Bagir Group and its held companies in Ethiopia, the US, Egypt, England and the British Virgin Islands, are known for developing, manufacturing and marketing impeccable quality of menswear and womenswear. With 1,050 employees, the group generated revenue of US $ 51.1 million.
As was reported in the Sourcing Journal, the Group is listed on the AIM market in London.
It all started back in April when large proportion of company’s orders were put on hold or cancelled owing to the massive spread of the pandemic.
Expectedly, soon the company ran out of cash resources to run as a profitable unit. It was going down – and going down fast.
An application was filed in the District Court in Beer-Sheva, Israel, for a temporary stay of proceedings against the company, appointment of a trustee and other relief while it assessed the ability to maintain the business and its assets.
The court has stated that as per the recommendations submitted by the initial trustee, the company has to be liquidated under court’s supervision. Besides, the trustee also recommended that ongoing operations have to be restricted to the collection of debts and ad hoc transactions of finished products and products in its inventory and that the company and/or its assets and/or activities, be sold in part or in full, through a public tender.
The court accepted the recommendations and placed Bagir Group into liquidation.
Court has also now appointed Ilan Shavit-Stricks Adv, Head of Firm and Senior Partner of Haim Zadok & Co, Tel-Aviv, Israel, as sole liquidator, to manage the company’s liquidation and given him complete authority, among other things, to publish a public tender for the submission of proposals for the sale of the company and/or its assets and/or activities, in part or in full.
Finally, the once much-talked about company is on sale. The top management, including the nominated adviser, has already resigned and the company’s ordinary shares remain suspended from trading on AIM.
It’s been a sad story so far – but then it’s been the same with many across the globe and with the pandemic not showing any signs of settling down soon, there could be more such casualties.