Reid & Taylor terminates 1,400 employees

Reid & Taylor, one of the first companies to be set up in Tandavapura, Nanjangud taluk, with much fanfare, as a result of globalisation and liberalisation in 1998, has terminated the services of 1,400 of its employees, as a part of liquidation.

Even though the liquidation order was long-pending, the termination of employees, during lockdown, in the wake of COVID-19, has come as a blow to the employees. The company was in financial crisis since three years. It has to be noted that the employees had staged a protest, stating that they did not get salary during the lockdown, recently.

Ravi Shankar Devarakonda, who was appointed as liquidator as per the orders of National Company Law Tribunal on February 5, 2019, to liquidate Reid and Taylor as per the Insolvency and Bankruptcy Code, 2016, has written a letter to this effect, to the employees on May 14.

Reid and Taylor India Limited is a subsidiary of S Kumar’s Nationwide Limited (SKNL). Reid and Taylor is a British brand for over 190 years, founded by Alexander Reid, a Scott, in the 1830s. He used Scottish Cheviot wool to create Cheviot cloth. As his clientele and reputation grew, he was joined by financier Joseph Taylor. It was launched by SKNL in India in 1998.

The liquidator has stated that the problems, such as discontinuation of job work by RNT Distributors Private Limited; no fresh sales orders; continuation of loss at EDITDA (earnings before interest, taxes, depreciation, and amortisation) level; discontinuation of power supply due to non-payment of dues; and lack of working capital; as the causes for the lay off of the employees.