Star Knitwear Placed Under Judicial Administration: 483 Jobs at Risk

Star Knitwear, a key player in Mauritius’s textile industry, has been placed under judicial administration for the second time, putting 483 jobs in jeopardy. The company, once a cornerstone of local manufacturing, is now facing serious financial trouble.

The government’s decision to put Star Knitwear into administration was announced recently. Mustaq Oosman has been appointed as Receiver Manager to oversee the process.

The company reportedly owes more than Rs 1 billion to creditors. Of the 483 employees affected, 283 are Mauritian workers.

This move follows several months of warning signs and tensions. In mid-May, the factory’s operations were halted after the Central Electricity Board (CEB) disconnected power due to unpaid bills.

An internal memo dated May 15, 2025, revealed that management had unsuccessfully tried to negotiate a payment extension and asked staff for patience.

Despite these efforts, employees did not receive their May salaries.

Reaz Chuttoo from the Confederation of Public and Private Sector Workers (CTSP) called the situation dire. He said, “Employees did not get their May salaries.

They have no money. They filed a complaint with the Ministry of Labour. We are now waiting for the Wage Guarantee Fund to be activated, so they can receive up to Rs 50,000 immediately.”

The Mauritian staff are demanding payment for their service time and are seeking redeployment to other companies, not necessarily in textiles.

Regarding the approximately 200 foreign workers, plans are underway to transfer them to other textile factories.

Chuttoo also called for a police investigation. Some workers claim they saw machines being moved from the factory to unknown locations, raising fears of illegal asset sales.

“Machines have been transferred. It’s important to find out whether these assets were sold before the judicial administration was officially declared,” he warned.

This latest crisis marks a new chapter in the troubled history of Star Knitwear. The company was previously placed under administration in 2015 but was partially rescued when a South African investor bought into its capital.

However, signs of collapse resurfaced early 2024, with mass layoffs announced in February and production stopping in May.

In June, Labour Minister Reza Uteem revealed debts of Rs 1.4 billion, owed mainly to the Mauritius Investment Corporation (MIC) and several banks.

While the company’s management has not yet issued public statements, unions are demanding answers.

They call on the Ministry of Labour to activate support mechanisms immediately, especially the Wage Guarantee Fund, to assist laid-off workers.

The government is also urged to step in with re-employment solutions for Mauritian workers now without income.

In an industry already weakened by regional competition, rising production costs, and economic uncertainty, the troubles at Star Knitwear highlight broader issues in the sector.

The case may also prompt questions about the role and effectiveness of the Mauritius Investment Corporation (MIC) in supporting struggling businesses.

Source: Defi Media