One of the reputed brand in Indian bicycle Industry – Atlas Cycles – stopped all operations on Wednesday.
Issuing a statement, the company said that was is not in a position to resume manufacturing operations due to financial constraints, and as such, it had decided to close down its Sahibabad unit.
The Haryana-based company, which started manufacturing bicycles in 1951, had already closed down two units in 2014 and 2018.
While in December 2014, its Malanpur unit in Madhya Pradesh was closed down, it suspended manufacturing at its Sonipat unit in 2018.
Following the closure of the Malanpur unit, the company had only two operational units – at Sonipat in Haryana and Sahibabad in Uttar Pradesh.
But with the closure of Sahibabad unit, the company has closed down all its operational factories.
“Post lifting of lockdown with effect from June 1, 2020, Sahibabad unit of the company is not in a position to resume manufacturing operations due to financial constraints. Hence, the workforce of Sahibabad unit of the company will be laid off with effect from June 3, 2020, till adequate arrangement of funds is made,” the company said.
The company said that due to severe cash crunch, it was difficult for the company to even procure raw materials.
This Shut down will impact the families of 700 as about 400 workers were directly dependent on the company’s operations while 300 more were indirectly benefiting from it.
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“This notice should have been given in advance, at least a week before to the employees. We were called to duty for two days and then suddenly we found this notice pasted today. Many people will get jobless and will be forced to fend for themselves if the management goes ahead with this decision,” Mahesh Kumar, leader of the worker union told media
Many microbloggers sharing their memories with bicycle ride of atlas brand and expressing sadness over it.
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