Atlas Cycles shuts down operations, to lay off workers
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, on Wednesday closed down its operations at Sahibabad unit. The company was facing economic hardship for long and the Coronavirus lockdown further amplified its problems. The employees will be laid off from June 3.
New Delhi: Atlas Cycles, one of the iconic Indian brand of bicycles that began manufacturing cycles in India in 1951 for every strata of society, closed down operations at its Sahibabad unit on Wednesday. The company was facing economic hardship for a long time 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.
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.
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.
In December 2014, Atlas Cycles closed down its Malanpur factory in Madhya Pradesh. In February 2018, it suspended manufacturing at its Sonepat unit in Haryana.
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