Manama: A Major regional jeweller has denied reports that it is facing a financial crisis and is being forced to shut shop.
The Dubai-based Atlas Jewellery, which has branches in Manama’s Gold City and in Riffa, is reportedly in turmoil after its chairman Dr M M Ramachandran and his daughter were allegedly detained over bounced cheques.
According to reports in the Gulf News and Khaleej Times, Atlas has defaulted on payments with as many as 20 banks in the UAE and India over debts in excess of 550 million Emirati dirhams (BD56m).
Stocks of gold in the company’s Dubai showrooms have also allegedly been removed.
However, Dr Ramachandran’s private secretary Shyam Mohan told the GDN from Dubai yesterday that these reports were incorrect. “The reports are not right and no-one has contacted us for an official response. There are no plans to shut down any of our shops, though it is true that there have been some financial hiccups due to the recent stock market plunge.
“Dr Ramachandran has not been arrested and is currently at his Dubai residence on medication, as all these unfair and baseless reports have affected his health. We did have to remove some gold from our Dubai showrooms, which has been cited as proof for business being closed down, but this is a normal thing to do.”
Listed by Arabian Business Magazine as one of the 100 most powerful in the GCC in its Indian Power List 2011, 73-year-old Dr Ramachandran established the firm three decades ago in Kuwait, and now has more than 50 outlets across the GCC.
“All our shops in GCC countries and India are open and it is business as usual,” he said, adding that Dr Ramachandran’s daughter ran the Atlas Star Medical Centre and had no role in the jewellery business.
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