Business Update3 Feb 2026, 10:54 am
Alkosign Ltd to Close Luggage Unit Due to Intense Competition and Unsustainable Losses
AI Summary
Alkosign Ltd has announced the closure of its Luggage Unit, effective from February 02, 2026, due to intense competition, continuous losses, and the widespread availability of low-cost polypropylene (PP) luggage. The unit, which possessed the technical capability to manufacture only polycarbonate (PC) luggage, faced commercial unviability and a significant reduction in outsourced production volumes. The cancellation of the Baggit licence and the prolonged withholding of payments further disrupted cash flows and affected the unit's financial sustainability. The decision aims to focus on the core business of the Company.
Key Highlights
- Alkosign Ltd to close its Luggage Unit from February 02, 2026
- Intense competition and continuous losses led to the decision
- The unit could only manufacture PC luggage, while the market preferred PP luggage
- OEM partners established their own manufacturing facilities, reducing outsourced production
- Cancellation of Baggit licence and withheld payments affected the unit's financial sustainability