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28 March 2024

Atlas Ramachandran strikes golden bailout deal, but will it be enough?

Atlas Group says it has entered into a financial deal with UAE-based investment firm Maas Group to raise funds. (File)

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By Joseph George

Atlas Group says it has entered into a financial deal with UAE-based investment firm Maas Group to raise funds. The equity from Maas will go into the Atlas Group owned businesses in the UAE and its healthcare facility in Oman.

M M Ramachandran, Atlas Group chairman, is currently in police custody for cases related to Dh53 million in bounced cheques, according to Dubai Police. His bail plea was heard today (Thursday).

A spokesperson of the Atlas Group told Emirates 24|7 that the group is in negotiations with banks and has committed to part-payments.

“We are in negotiations with the banks to request additional time,” the spokesperson said.
The gold and jewellery retailer has allegedly defaulted on loans worth about Dh500 million, and another Dh30 million to gold suppliers.

According to the spokesperson, the group’s other operations including its more profitable jewellery chains across the GCC and India will continue to remain under the control of Atlas Group.

As per its website, there are about 18 outlets across the GCC excluding the UAE. In the UAE, it has about 20 outlets including 12 across Dubai. However, not all outlets in the UAE are fully operational.

Earlier, it was reported that Atlas Group had decided to sell the two healthcare facilities in Oman as well as sell its stake in GCC business. Assets in India are currently not on sale. The group had also said that its two healthcare facilities are worth around Dh500 million to Dh600 million.
 
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Many outlets in Dubai have run out of gold and are selling only diamond jewellery.

The joint statement released by Atlas Group and Maas says the investment is to strengthen the financial stability of Atlas Group and also bring back the operations of all its outlets in the UAE to an optimum level.

“By teaming up with Maas Group we are able to enhance the presence and impact a larger customer base,” Ramachandran said.

“We ensure that all the showrooms will be filled with adequate stock at the earliest and Atlas will shine much brighter again,” added Ramachandran.
Although no other financial details about the deal has been announced, Maas Group in its statement said it has teamed up with Atlas to rejuvenate the Atlas Group considering the trust of the millions in the Atlas Group.

“We are pleased to combine our strengths to meet the demands of the market – delivering high quality service to customers”, said Mohammed Abdul Shabbir, Chairman and Founder of Maas Group.

Shabbir also emphasised that the Maas Group is coming forward to rejuvenate the Atlas Group considering the trust of the millions in the Atlas Group. He also mentioned that thousands of people have come forward expressing solidarity with Atlas.

“The Maas group is happy to join hands with Atlas, in the interests of Atlas as well as the millions who have trusted Atlas for the last several decades. This has also impressed us very much and was another reason for us to associate with Atlas,” the statement added.

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