On world bicycle day, Atlas Cycles shuts down operations, lays off workforce
The company, in a statement said that it is not in a position to resume manufacturing operations due to financial constraints and hence the employees of Sahibabad unit are being laid off from June 3.
New Delhi: Atlas Cycles is one of the iconic Indian brand of bicycles with which anyone & everyone can connect. The company, which was into manufacturing cycles business since 1951 for every strata of society including children and adults, today closed down its operations at Sahibabad unit. The company was facing economic hardship for long and the Coronavirus lockdown further amplified its problems.
The company, in a statement, said that it is not in a position to resume manufacturing operations due to financial constraints and hence the employees of Sahibabad unit are being laid off from June 3.
“Post lifting of lockdown with effect from June 1, 2020, Sahibabad Unit of the company is not in a position to resume manufacturing operations due to financial constraints. Hence, the workforce of Sahibabad Unit of the company will be laid off with effect from June 3, 2020, till adequate arrangement of funds is made,” the company said in an official letter.
‘No money for daily expenses & buying raw materials’
The company in a notice to employees said that the severe cash crunch has made it difficult to even procure raw materials.
“The situation is expected to continue till the time, company is able to raise revenue,” it said.
Uncertain future for 700 employees
The closure of Sahibabad unit of Atlas Cycles has led to huge commotion in life of workers employed at this unit. About 400 workers are directly dependent on company’s operations while 300 more are indirectly benefitting from it. In total, 700 lives will be affected by this shutdown.
2 other units of Atlas cycles closed in 2014, 2018
In December 2014, Atlas Cycles’ Malanpur factory closed down.
While suspending operations, it had said that “after years of losses incurred from its Malanpur factory in Madhya Pradesh, Atlas Cycles has decided to shut down the unit”.
Post the closure of the Malanpur unit, the company will be left with two other operational units at Sonepat in Haryana and Sahibabad in Uttar Pradesh.
In February 2018, Atlas Cycles (Haryana) said it was suspending manufacturing at its Sonepat unit with immediate effect.