Mysuru’s Southern Star hotel shuts shop
Southern Star, one of the oldest star hotels in Mysuru, has closed down and its management has terminated all the employees, citing the lockdown and the pandemic situation.
In the notice to the employees, its general manager stated, "the hotels have been affected (by the lockdown) very badly and the situation will continue indefinitely, even after the lockdown has been lifted.This is because according to World Health Organisation the pandemic may take a long time to eradicate…Under the circumstances the management has decided to close down the hotel by terminating their employees and staff."
The notice further said, "The management will settle all the dues including termination compensation to all the employees/staff the prevailing rules".
Hotel southern Star is a unit of Indra hotels (Mysore) Pvt Ltd.
The decision has come to light just when the hotel owners are being assured of permission to open their hotels in next three days by chief minister B. S. Yeddyurappa, according to Mysuru Hotel Owners' Association head C. Narayangowda.
Mysuru being a major tourism destination, at least 30 per cent of its people are dependent on tourism, and over 1 lakh people depend on tourism in Kodagu. About 10 per cent of the tourists to Mysuru are foreigners.
Narayangowda said there are 405 hotels in Mysuru with 9,500 rooms, employing at least 25,000 people. The hotels are suffering a loss of Rs 10 crore per day due to the lockdown. as per
RTIL Limited (formerly known as Reid and Taylor (India) Limited) has shut down its plant at the Thandya industrial area in Tandavapura in Nanjangud taluk and its employees and workers have been discharged from their services.
A notice issued by liquidator Ravishankar Devarakonda has stated that, the National Company Law Tribunal (NCLT) had by its order dated 5 February 2019 directed that RTIL is to be liquidated in the manner laid down in Chaper 3 of the
Insolvency and Bankruptcy Code 2016."
The notice further stated, "I have done my best possible efforts to run the company as a going concern for over 14 months since the commencement of liquidation but regret to inform that now I have no other option other than to discontinue the business operations due to reasons including ongoing job work arrangement being discontinued by RNT Distributors Private Limited; there are no sale orders on hand as on date; the company continues to incur losses at Ebitda level; the electrical supply has been disconnected due to non payment of dues; there is no working capital support from the customers/creditors of the company and no available cash flows to run the day to day operation of the company.
"In the meeting held on 5 May 2020, pursuant of section 35 (2) of the code, all these challenges were discussed with the stakeholders (financial creditors) of the company, and the conclusion reached was that there was no option but to permanently shut down the operation of the plant and to discharge all workers and employees."