Labour unrest forces Apex Spinning to shut Gazipur factory, leaving 5,000 workers in limbo
The suspension of factory operations took effect yesterday and will remain in force until further notice.
Apex Spinning and Knitting Mills Limited, a 100% export-oriented vertically integrated textile manufacturer, has announced an indefinite temporary layoff at its production facility, leaving nearly 5,000 employees and workers facing uncertainty.
According to a disclosure filed with the Dhaka Stock Exchange (DSE) today (24 June), the company's board approved the decision at an emergency meeting a day earlier.
Invoking Section 13(1) of the Bangladesh Labour Act, 2006, the company has suspended all manufacturing and operations at its factory in Kaliakair, Gazipur, with immediate effect until further notice.
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The textile manufacturer stated that the sweeping operational suspension was forced by ongoing labour agitation inside the factory premises. Management alleged that protesting workers had raised various demands over corporate service benefits that it considered unlawful, making normal operations impossible.
In its disclosure, the company said it had no alternative but to declare a legal layoff as the prevailing situation had severely disrupted production and compromised workplace security.
The shutdown comes as Apex Spinning is already under financial pressure. During the July-March period of FY2025-26, its revenue fell 9.28% year-on-year to Tk383 crore, while net profit dropped 15.20% to Tk2.14 crore. Earnings per share stood at Tk2.56, while net asset value per share was Tk84.16.
Despite weaker earnings, the Tk307-crore market-cap company has maintained a 20% cash dividend every year since FY2020-21.
The company's shares also came under regulatory scrutiny after soaring about 140% between March and May this year, rising from Tk181 to Tk434.60. The DSE subsequently sought an explanation for the unusual price movement, but the company said there was no undisclosed price-sensitive information behind the rally.
Following the layoff announcement, Apex Spinning's shares rose 1.98% today to close at Tk365.80. Sponsors and directors hold 50.71% of the company's shares, institutional investors 11.58%, foreign investors 0.25%, and the general public 37.46%.
The closure adds to the growing number of non-operational listed firms on the country's stock market. According to DSE data, 33 listed companies—around 8.25% of all listed entities—are currently closed or non-operational.
Under DSE listing rules, trading is not suspended immediately when a listed company ceases operations. Instead, the exchange issues warning notices on its trading monitor. If a company fails to hold annual general meetings, publish annual financial statements and resume operations within six months, it is granted another six months to comply, failing which it faces delisting.
Bangladesh Securities and Exchange Commission rules also require any listed company that remains out of operation for more than six consecutive months—unless it is undergoing balancing, modernisation, rehabilitation or expansion—to be downgraded to the Z category, increasing regulatory pressure on Apex Spinning to resolve the labour dispute.
