Industry sources said Rama Fashions, a textile firm situated in Abhinandan textile market, vanished on Saturday. On learning that the firm was closed, the creditors (mostly weavers) tried to locate the firm owner, but were unsuccessful.
The firm was in existence for around one year, and was involved in trading. It has caused losses in the region of Rs 60 to 70 lakh to the traders and weavers.
The broker, through whom the firm had acquired the grey fabric, was also reported missing, sources said. One more textile firm - Vallabh Sarees, situated in Abhishek textile market, vanished on Tuesday. The firm owner Purshottam Rathi could not be reached, despite frantic attempts by the creditors.
The Federation of Surat Textile Traders Association president Attar Singh said: "Some weavers, who have lost money in Vallabh Sarees, have approached us yesterday and today. The amount of loss caused by the firm's disappearance is estimated to be around Rs 25 lakh, but it could increase by a few lakhs."