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C&A Textiles has decided to resume production of both garment and textile divisions next month six years after the closure of its factory.
The Chattogram-based textile maker was shut down in 2017 due to a loan scam committed by its previous owners. Then Alif Group acquired it in 2021.
Md Azimul Islam, new managing director, confirmed the news of production resumption.
The company had already completed trial production after installing some new machinery and refurbishing the old ones out of its initial investment of Tk 500 million, he said.
Earlier in August last year, Chairman of the Bangladesh Securities and Exchange Commission (BSEC) Shibli Rubayat-Ul-Islam inaugurated the trial production.
C&A Textiles received a High Court order to conduct the annual general meetings (AGM) that had remained pending since 2017, according to a regulatory filing on Wednesday.
The date, time and venue of AGMs as well as board meetings for the pending AGMs will be notified later, said the company.
Before the closure, the company paid 10 per cent stock dividend in 2016 upon gaining a profit of Tk 247 million.
The company had to stop its operation just a year after its debut trading in 2015 due to working capital shortage.
As the company failed to restart operation in 2017, the securities regulator took an initiative to revamp the company by restructuring its board in February 2021.
In October 2021, the securities regulator allowed Alif Group to acquire C&A Textiles.
Two other companies of Alif Group --- Alif Manufacturing and Alif Industries are also listed in the stock market. C&A Textiles' factory is situated in the BSCIC area of Chattogram.
In July 2020, the BSEC found that ex-managing director of C&A Textiles' Rukshana Morshed, director Sharmin Akther Lovely, and Bangladesh Shoes Industries together sold around 12.2 million shares of the company without a prior declaration, taking away around Tk 120 million from the sales.
The regulator later fined them Tk 190 million in total and banned them from taking on the roles of directors at any other listed company.
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