Beachwear Under Admin: 4th July’s 2 Key Decisions Could Change Everything

Beachwear Exports Co. Ltd, once a major exporter of beachwear, has been under judicial administration for over a year. The company is now at a pivotal point that could determine its future.

On Friday, July 4, 2025, the administrator appointed by PwC, the consulting firm overseeing the company, will hold a formal meeting with its creditors at the PwC Centre in Moka. The creditors must decide whether to pursue a restructuring plan or proceed with liquidation.

Beachwear Exports has not been active since mid-2024, leading to significant debt accumulation. The company’s inactivity and financial troubles prompted its placement under judicial administration according to Mauritian insolvency laws.

PwC was appointed as administrator to assess and stabilize the company’s precarious financial situation.

A representative from PwC explained that during the meeting, creditors will consider two key issues:

-1st, the possible formation of a creditors’ committee to oversee the administration process;

-2nd, whether to replace the current administrator to improve management.

These decisions could shape the company’s future strategy and influence the chances of recovery.

Three main scenarios are on the table: reaching a formal agreement with creditors, adopting a recovery plan in a future “watershed” meeting, or liquidating the company if negotiations fail.

The PwC representative emphasized that the current priority is to conduct a comprehensive review of the company’s situation to identify viable solutions. Interestingly, the absence of active employees simplifies some administrative processes.

This Friday’s meeting is more than a routine compliance exercise. It offers creditors a chance to voice their opinions on the company’s future. The outcome could lead either to a partial revival or to an inevitable liquidation, leaving the company’s fate uncertain.

Meanwhile, union representative Faizal Ally Beegun urged former employees to file complaints with the Ministry of Labour if they have unpaid wages, sick leave, or annual leave. He stated that the company should owe nothing to its employees.

In November 2024, Beachwear employed around 150 staff members, including Mauritians and foreign workers from Bangladesh and Nepal.

Beegun pointed out that the company was already facing financial difficulties, worsened in October 2024 by the death of its director in India.

He stressed that the administrator is legally obliged to inform employees about the company’s administration status. Employees should then submit this notice to the Labour Department in Rose-Hill, where the company is based.

He also highlighted that unpaid wages are considered debts, and employees must have a say in upcoming decisions affecting the company’s future.

Source: Defi Media