Closure of Jamnagar unit: Digjam may sell surplus assets to raise resources

Production at the company's Jamnagar mill has been suspended since October 21, mainly due to a liquidity squeeze and working capital position

Apparel company Digjam, which recently stopped operations at its manufacturing unit in Gujarat’s Jamnagar, on Monday clarified in a letter to stock exchanges that it was exploring various avenues to raise resources.

The company stated that the reason for the closure of the mill was mainly a liquidity squeeze. “Production at the company's mills at Jamnagar has been temporarily suspended due to extreme tight liquidity and working capital position. The company is exploring various avenues to raise resources, including through sale of surplus assets,” Digjam said in the letter.

Production at the company’s Jamnagar mill has been suspended since October 21. Digjam mentioned in its letter that it had earlier written to bourses on June 5 along with notes to financial results regarding the impact of working capital on operations.