GEORGE TOWN: Hong Kong-based textile and garment manufacturer, Esquel Group Malaysia Sdn Bhd (EGM), unprofitable since 2015, will cease operation after five decades as Covid-19 pushes the company over the edge.
General manager Edward Ho in a letter dated April 15 said their factories in Penang and Kelantan would shutter on June 12.
A compensation package has been approved by the management for all of its employees.
Employees currently observing MCO would resume work once the MCO order is lifted until the company shuts down in June, Ho said.
"With a heavy heart, I would like to inform you that the operation of EGM for both of Penang and Kelantan factories will be closed on June 12, 2020," he said.
Ho said over the past five decades, EGM has been at the forefront of garment manufacturing and delivering its best to customers.
He said although the company had been operating at loss since 2015, it had transformed into a 100% localized company with consistent growth in production sales at its Kelantan plant as well as having the largest female workforce in the state.
"However, the sudden outbreak of the Covid-19 pandemic has plunged the world into a standstill.
He said all the company's customers had temporarily closed their retail business since March.
Ho said EGM could not operate under the movement control order (MCO) and neither could its customers.
"With the pandemic situation worldwide worsening, we simply do not have enough upcoming orders to sustain EGM’s continued operation," he said.
Ho said it had been an honour to have worked with the company and its employees.
"No words can express my heartfelt gratitude for your dedication, commitment, and support over the years," he added.
Among the customers EGM has produced for are Ralph Lauren, Brooks Brothers, Land’s End, Tommy Hilfiger, Hugo Boss, Fred Perry, Marks and Spencer, Banana Republic and J. Crew.
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