Former Jewel of Mauritian Textile: Auction of Star Knitwear's Assets in Judicial Liquidation

After years of financial difficulties, Star Knitwear, once a leader in the "Made in Mauritius" textile industry, is putting its assets up for auction. This step is crucial for compensating employees and repaying the creditors of the group.

Due to the inability to find a buyer, Huns Biltoo and Mushtaq Oosman, the Joint Receivers & Managers of Star Knitwear, have decided to sell the assets of what was once a flagship of the "Made in Mauritius" textile sector.

The company has accumulated debts of around Rs 1.2 billion and was placed under judicial administration at the request of its creditors. Last August, an agreement was reached to compensate approximately 600 laid-off employees. The sale of assets now marks a new phase aimed at repaying the creditors.

Incorporated in 1987, Star Knitwear could produce up to 900,000 garments per day at its peak. However, for several years, the company faced severe financial issues and gradually lost major clients. In 2015, the group was placed under voluntary administration for the first time, but the arrival of a South African investor temporarily saved the company from bankruptcy.

On Friday, KPMG Advisory Services Ltd, acting on behalf of the Joint Receivers & Managers, published a notice for the commercial sale of the assets of Star Knitwear Group Ltd (in receivership). Located in the Coromandel Industrial Estate, these assets include leasehold land and industrial structures, offered on an "as is, where is" basis.

The available lots of land and buildings are as follows:

• Lot 1: An area of 3.80 acres, including a leasehold plot with a knitting block of 8,250 m² and a dyeing/storage block of 300 m².
• Lot 2: A total area of 35,450 m² in leasehold, divided into 12,450 m² to the west and 23,000 m² to the east (including 13,172.85 m²), comprising a main factory of 1,445.50 m², a storage warehouse of 525 m², as well as southern and north-western areas of 450 m² and 320 m² respectively.
• Lot 3: An area of 377.88 m² in freehold, housing a water pump for the factory.

These facilities, totaling several thousand square meters, reflect the scale of the company's textile operations, focused on production and storage.

Additionally, other assets are available for sale on the same "as is, where is" basis: machinery, inventories of finished goods (clothing), and factory equipment.

The purchasing procedures are strict. Interested parties must submit a firm written offer, accompanied by a deposit cheque equivalent to 10% of the proposed amount, to the Joint Receivers & Managers at the KPMG Centre.

This sale marks a decisive step in resolving the crisis at Star Knitwear, potentially allowing for a partial revival of operations or a redistribution of assets to other players in the Mauritian textile sector.