Coronavirus outbreak brings an economic crisis along with health issues. Almost every business around the globe has been suffered amid lockdown. Pakistan’s Gul Ahmed Textiles is one of them.
Recently, Gul Ahmed fires 450 of its employees due to the loss of 452 million.
Gul Ahmed Textile Mills Ltd is one of the brands that is famous for its classic design and elegant patterns. Further, they have a retail chain under the name of “Ideas by Gul Ahmed” and exporters of various textile products.
It is noteworthy that last year from January to March the company made a profit of 654 million contrary to their current financial situation. Despite Coronavirus Lockdown company decides to go for the layoff of hundreds of employees for now.
Due to these circumstances, the production in the mills has been ceased amid the outbreak. However, the current financial capacity of the company is quite weak as a result of unstable cash flow.
Gul Ahmed is the exporter of home textiles and furnishings for the bedroom, kitchen, and bathroom, as well as men’s and women’s apparel. Whereas, the export orders had not delivered on time which has ultimately crippled its financial position.
As compared to the company’s profit and growth in the previous year, this loss should be a big trauma for the company because local and export earnings are almost nil.
In the first nine months of FY20, the company’s profit fell 77% to Rs. 616 million as compared to the previous financial year in which it was Rs. 2.7 billion.
A Way Out
The company is unlikely to get a reprieve shortly due to the economic slowdown in its targeted local and export markets.
Gul Ahmed Textile Limited consider as one of the biggest textile business of Pakistan owing more than 1,000 employees. Now, The Company’s management is seeking government help and relief to get out of the financial predicament.
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