The COVID-19 pandemic has created an unprecedented perfect storm for the global supply chain of textiles and apparels, putting every stakeholder in the industry under immense pressure to survive and recover from the crisis. The retailing environment, in particular, is almost in a standstill with retail stores under shutdown in many countries.
The impact is no less significant at the supplier’s end. To ensure the long-term sustainability of Esquel, we are making the extremely difficult decision to immediately downsize our operations, reduce headcount, and cut expenditures. It is with much pain that we have decided to close the following factories:
1. By April 30, 2020: Esquel Fenghua in China
2. By June 12, 2020: Esquel Malaysia in Penang and Kota Bharu, Malaysia
3. By July 31, 2020: Flacq factory in Esquel Mauritius
In the next few months, we will ensure a smooth and fair transition for all our affected employees, and our teams will continue to provide our customers with our very best products, services, and solutions. We strongly believe that the above measures will transform Esquel into a more resilient, agile, and leaner organization.