Arc Pro’s 34 Workers Face Redundancy Amid Rs 9.1m Losses

The Redundancy Board is set to rule on the fate of 34 employees from Arc Bag Industries Company Ltd, which has been placed under provisional liquidation due to significant financial difficulties. The case will be heard this Thursday, 21st August, with the employees presenting their case to the board, chaired by Rashid Hossen. The company, known for its Arc Pro brand, has been struggling with its finances for some time, recently failing to pay staff wages.

Financial Woes and Closure

Arc Bag Industries has accumulated losses of Rs 9.1 million over the past six years. The company reported a loss of Rs 261,829 in 2020, which grew to Rs 867,446 in 2021 and Rs 1.4 million in 2024. By June of this year, losses had reached Rs 3.8 million.

The firm attempted to stay afloat by seeking bank overdrafts, and in May, it requested an overdraft of Rs 613,612 to cover staff salaries.

However, unconfirmed orders in June left it unable to pay employees, leading to staff being forced to stay home from work.

The company’s inability to repay its existing bank overdrafts, totalling Rs 8.2 million, has led to the decision to close.

A meeting at the Ministry of Labour confirmed the company’s inability to continue operations.

Voluntary Liquidation

The directors of Arc Bag Industries passed a resolution on July 30 for the voluntary winding-up of the company under Article 137 (4) (a) of the Insolvency Act of 2009. Shaneeha Abdul Carim has been appointed as the provisional liquidator.

The Redundancy Board will now determine if the closure and the subsequent dismissal of 34 staff members are justified.

Company History

Arc Bag Industries, one of Mauritius’s pioneering manufacturers, began operations in 1963 from a small house in Port Louis, where its first bags and wallets were made by hand. The official ARC PRO brand was established in 1987.

The company’s product range includes hiking bags, cooler bags, gym bags, school bags, laptop bags, and various travel accessories.

The affected workforce includes 21 factory operators, six helpers, two factory attendants, one secretary, three supervisors, and one accountant.

Source: Le Mauricien