Rs1.2 Billion Debt: Star Knitwear’s 37-Year Textile Legacy Ends in Liquidation Sale

The assets of Star Knitwear, once a flagship of the Mauritian “Made in Maurice” textile sector, are being put up for public auction as the company’s financial liquidation process moves forward.

This critical step aims to facilitate the reimbursement of creditors and marks a decisive phase following years of financial struggles for the firm, which racked up an estimated Rs 1.2 billion in debts. The sale, announced by KPMG Advisory Services Ltd on behalf of Joint Receivers & Managers Huns Biltoo and Mushtaq Oosman, comes after the failure to secure a buyer for the group.

Factory and Equipment on the Block

The assets being sold include the Star Knitwear factory itself. Specifically, the sale covers land (leasehold and freehold) and industrial structures located at the Coromandel Industrial Estate, offered on an “as is, where is” basis.

The available lots and properties include:

• Lot 1: 3.80 arpents of leasehold land, featuring an 8,250 m² knitting block and a 300 m² dyeing/reserve block.
• Lot 2: A total of 35,450 m² of leasehold land, comprising various sections including a 1,445.50 m² main factory, a 525 m² storage warehouse, and other zones.
• Lot 3: 377.88 m² of freehold land, housing a water pump for the factory.

In addition to the property, other operational assets are being offered for sale under the same conditions, including machinery, finished goods stock (clothing), and factory equipment.

Debt and Compensation

The liquidation and subsequent sale are vital to repaying the company’s creditors. An earlier, separate agreement was reached in August to provide compensation to approximately 600 dismissed employees.

Star Knitwear, incorporated in 1987, was once a powerhouse, capable of producing up to 900,000 garments per day at its peak.

However, the company faced acute financial difficulties for several years, losing key customers.

A temporary rescue from bankruptcy was achieved in 2015 when a South African investor intervened after the group was first placed under voluntary administration.

Interested parties are required to submit a firm written offer, accompanied by a 10% deposit cheque of the proposed amount, to the Joint Receivers & Managers at the KPMG Centre.

This sale could potentially lead to a partial revival of operations or the redistribution of assets to other players within the Mauritian textile sector.

Source: Defi Media