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S&V Weekly Newsletter Vol.2 No.22, June 6, 2016

S&V Footwear and Leather Goods / S&V African Leather/ S&V Protect

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‘Kit Group facing liquidation’

Johannesburg (SA) – Credit Guarantee Insurance Corporation (CGIC) is to decide shortly – perhaps as soon as tomorrow – whether to put M1 Latex Products (Pty) Ltd, trading as The Kit Group, into liquidation.
                The Kit Group is a manufacturer and distributor of uniforms and work wear, with a number of offices in SA and in Angola, Mozambique, Botswana and Namibia. It has been in business for over 25 years,                 Gideon Bochedi, GM claims & collections at CGIC, said he had been led to believe that M1 Latex was not trading.
                This follows the decision in May by Sasfin Bank to perfect the notarial bond it held over M1 Latex’s movable assets, including all stock. It has subsequently sold those to Jade Corporate Clothing Concepts (Pty) Ltd, a company in Jeppestown, which is under business rescue.
                “We would like to do an investigation into M1 and its inability to pay our clients,” he said. “It doesn’t look like there will be a payout to creditors unless there is an investigation.”
                Sipho Sono, a business rescue practitioner working with Jade, was unable to respond to queries in time for this newsletter.
                Kit Group founder Joe Pereira had not returned our call at the time of writing.

 

 

Simply Shoes closes

Krugersdorp (SA) – Mini-chain Simply Shoes went into liquidation at the end of March, owner Preshan Ramharack said, blaming trading conditions.
He said at the time of liquidation, it had 11 stores.
He declined to comment on how much it owed to trade creditors.
Attempts to contact Neil Button of Stowell & Co., the liquidator, were unsuccessful.

 

The LRI project: Week 3

The Big Wigs

From Karl Flowers, sub-contractor for the Institute for Creative Leather Technologies, who are consulting for the DTI on the proposed Leather Research Institute
To draw a conclusion on the travels around the South African leather industry, the delegation was back in the Gauteng region to put the finishing touches to the industry consultation. It was important to have detailed discussions with three last major players.
On the Monday it was a chance of all the big role players at the University of Pretoria to give detail about their structures and to give the researchers a chance to frame how exactly the institutes and the course curriculum work. The delegation had an opportunity to speak to Prof. Marietjie Potgieter who is the Dean of the Natural and Agricultural Sciences at the university. She gave excellent insight into what was required as an institute and she set the scene for further discussions of what the tie-up between the university and the industry would be.
Prof. Potgieter paved the way for Hermien Dorfling from UP Enterprises to explain how other commercial ventures are handled through the enterprise part of the university. She explained how the university mandate extends to National Qualification Framework (NQF) five and above and how external parties can be found to handle all areas lower than five.
Prof. Mike Wingfield from the Forestry and Agricultural Biotechnology Institute (FABI), one of South Africa’s most successful institutes, kindly spared us some time to explain how they modelled the institute and grew it, using research money to grow it into the mega success that it is today.
To complete the UP day, a lunchtime meeting with Prof. Egmont Rowher (current Head of Department of the Chemistry Department), discussed the potential research that the Leather Research Institute could be doing for the next few years and the discussions covered: local leather research topics like unique indigenous plant extracts that could be found using modern screening techniques, to his department speciality, headspace gas chromatography that can be used in an electronic nose capacity to smell out malodours in cars or to isolate what makes leather smell so nice. All in all, the UP talks were extremely positive and full of potential.
On the Tuesday, the delegation moved to O.R. Tambo Airport to present the LRI update and to chat about the institute with the SHALC AGM. The council members were full of interest and had some realistic questions to ask about the institute mechanism. Updated information assimilated from the UP meetings, the day before, allowed a much fuller outline of what the institute would look like with the institute including a commercial arm that handled the services and low NQF level training and research focused university-type institute that liaised with industry to do projects of national importance.
On the Wednesday, the day started with a lovely trip to Highveld Taxidermy, to discuss the often overlooked taxidermy side of the leather business. Not strictly included in the industry, the taxidermists get on with art of creating trophies. These companies have to use tanning technology and science to stabilise the materials and then finish it off with the artistry and creative details. Many opportunities with a relationship between the tanners and the taxidermists.
The final part of the consultation ended with a final meeting at Onderstepoort with Prof. Gerry Swan, Stefan van As and Ernest Heunis. The point of the meeting was to wrap everything up and to discuss the highlights of the two and a half weeks’ travelling. Key points were summarised and actions forward were highlighted. It has to be said as a closing remark that the consultation was a resounding success and with a few more people to speak to telephonically or by email, the entire industry would have been spoken to and their feelings heard. The trip was overwhelmingly positive, supportive and in principle very keen to take this institute idea forward. A big thank to all people who took part. – [+27 (0)76 081 5903, karl.flowers@northampton.ac.uk] Note: Nigel Dunning of Mimosa Extract Company has pointed out that Dr. Clive Jackson-Moss, mentioned in the previous report, is not the only member of the South African leather tanning industry who holds a PhD. There’s also Dr. Neville Slabbert, who’s still working at Mimosa Extract Company, and who, like Clive, was formerly with LIRI.

 

 

Source Africa: Fair kicks off on Wednesday

Cape Town, (SA) – If you have not yet pre-registered to attend Source Africa, you can still do so online at www.sourceafrica.co.za.
Over 1,500 industry professionals will attend the trade exhibition this week on 8 and 9 June at the CTICC in Cape Town. The event will connect buyers to over 180 manufacturers, suppliers and service providers from 13 countries. There will be country pavilions under the auspices of Enterprise Mauritius, Lesotho National Development Corporation (LNDC), Trade & Investment KwaZulu-Natal (TIKZN), Gauteng Growth and Development Agency (GGDA), Clotex and Zimtrade and individual participation from Ethiopia, Madagascar, South Africa, Nigeria, USA, United Kingdom, Germany, Tanzania and Egypt.
Says Clay E. Hickson, WRAP, USA and this year’s leader and moderator of the AGOA – the African Advantage seminar, ‘Africa’s potential to become a sourcing destination of note is steadily increasing, and as a recognized leader in the field of global social compliance, WRAP believes that the continent has a great opportunity to instil the principles of ethical manufacturing into its business community right as its sourcing industry is maturing. Source Africa provides a great platform for raising awareness of these principles and we look forward to utilizing the event’s tremendous networking and information sharing opportunities to make a positive impact on all the stakeholders involved.’
Says William Scalco, organiser of Source Africa, ‘We are proud to host an integrated event that brings together industry leaders from manufacturers, suppliers, service providers and buyers enabling buyers the opportunity to view an extensive array of products available from Africa.’  For more information on Source Africa, contact Tel: +27 (0)21 790 5849, Email: deidre@sourceafrica.co.za, Website: www.sourceafrica.co.za

 

 

SAFLIA Digest out

From Jirka Vymetal, director, SAFLIA
From Nerisha Jairaj, executive director, SAFLEC
Durban (SA) –
SAFLIA has concluded the much awaited Digest for Jan-June 2016. The electronic version has been e-mailed and hard copies will be posted within the next week.
Also, SAFLIA will host a labour law update seminar for its KZN members on June 23. Details will be sent to members in due course.
Some of the many benefits SAFLIA offers to members.

 

SAFLEC board nominations

Durban (SA) – SAFLEC has extended the nomination period for new board members to Friday, June 10. Nomination forms are available from Prenisha Dukhipersad at info2@saflec.co.za.

 

Atom buys Shoemaster from Torielli

Vigevano (Italy) – The Atom group and Torielli have reached an agreement for the acquisition by Atom of the UK company CSM3D, developer of the Shoemaster CAD/CAM systems. This important strategic investment by Atom is for the expansion and technological development of the suite of integrated Shoemaster applications. Atom has acquired from Torielli S.p.A 100% of the capital of CSM3D. The investment is not only in advancing the technological development, but also enlarging the worldwide distribution network for the suite of Shoemaster applications that are recognized as the leading platform for 3D integrated shoe design and manufacture.
CSM3D will become Shoemaster International and will perform a central role in the global business, working in close partnership with Shoemaster s.r.l, a newly created Italian technical-commercial support division that will be based at the Atom headquarters in Vigevano. This is in addition to a worldwide network of service companies shared with Atom.
The business strategy involves a quantum leap on the technological front by extending the integration of Shoemaster with the production range of Atom and Main Group technologies. In addition to utilizing the combined strength of the groups worldwide sales network, enhancing a market orientated approach to “delivering service” and satisfying the demand for global integration and production coordination in the footwear industry.
Shoemaster International will take over the worldwide Shoemaster sales and service network from Torielli S.p.A. Torielli will continue with some links to Shoemaster International, distributing the Shoemaster products in the market segments where they now focus their attention.

 

 

They Said It

"Trading conditions? That’s easy. K. A. K." - Greg Bing, member of Fish Hoek retailer A.P. Jones, responding to our request for comment..

"It’s Jo’burg – everyone thinks it’s Hollywood here." - Claudia Civico Ingram, of Zaccara Couture, on prices in the wedding industry.

"Small shop we started to keep busy, something to do." - MF Seedat, who recently sold repairer and crafter supply company Prince International, supposedly to retire, on why he has opened Same Time Shoe Repairs in Durban’s CBD.

 

ABSA Agri Trends 31/05: Hides & skins prices

The average hide price over the past week was R14.60/kg green. Hide prices are determined by the average of RMAA and independent companies.
The average price for Dorper skins was R54.09/skin and Merino was R89.48/skin.
The average price for ostrich skins was R1431.58.

Hide & skin price progression
Date Hides/Kg Dorper/Skin Merino Skin
27/11 13.11 78.75 71.11
15/01 13.45 83.13 84.89
22/01 13.79 82.50 79.79
29/01 13.93 84.44 79.17
05/02 14.18 79.00 85.37
12/02 14.35 79.17 93.27
23/02 13.76 76.50 96.02
01/03 14.09 68.93 94.00
08/03 14.20 67.50 93.29
18/03      
25/03      
29/03 13.85 63.85 88.37
01/04      
05/04 14.15 64.55 87.92
12/04 14.21 64.55 99.17
10/05 14.66 60.00 91.08
17/05 14.50 60.77 92.41

 

Birthdays this week

06/06/1963: José Leite, SA Polymers & Compounds, Gillitts.
06/06/1943: Doug Patterson-Roberts, Marchez Shoe Salon, Shelley Beach.
06/06/1951: Yusuf Mayet, Come Duze Store, Sandton.
07/06/1984: Clenton Govender, Prisaan Footwear, Pinetown.
08/06/1955: Brad Lemkus, retired, formerly Hi-Tec.
09/06/1964: Jayne Pillay, Edcon, Durban.
09/06/1957: Willem Fourie, Images, Bloemfontein.
10/06/1961: Richard Turner, emigrated, formerly Bolwear, Great Brak River.
10/06/1951: Marthus Louw, Bolwear, Great Brak River.
10/06/1955: Piet Kleyn, acting CEO, SA Ostrich Business Chamber and chairman, KL Ltd board, Oudtshoorn.
11/06/1961: Andy Raouna, left the industry, formerly Multiserv, Johannesburg.
11/06/1948: Basie Vermaak, retired, formerly Watson Shoes, Great Brak River.
12/06/1954: Frieda Maisey, left the industry, formerly Brondean Agencies, Port Elizabeth.

 

In Memoriam this week

06/06/2002: Willie Compion (b. 21/10/1929), G&D Shoes, Bulawayo.
06/06/2013: Willem Lubbe (b.25/01/1925), AP Lubbe & Son [closed], Stellenbosch.
06/06/2001: Willem Elbers (b. 09/04/1941), East Cape Tanning/BASF.
09/06/2002: Howard ‘Snowy’ Vaubell, Crown Footwear, Pinetown.
09/06/2003: Dr Stanley Shuttleworth (b. 1911), LIRI founder, Grahamstown.
12/06/2004: Neville Williams (b. 04/1945), Cameo Components/Central Components [closed], Pinetown.

 

Trade Fair dates

For a list of local and international trade fairs covering footwear, leather goods, leather and PPE, visit our website: http://www.svmag.co.za/events.php

 


Classified Adverts

KZN agent seeks new principals

Established, Durban based Sales Agency looking for Footwear and Clothing product ranges to sell throughout KZN. Thirty plus years experience in Footwear and Clothing, Berea based office and showroom, fully staffed office during business hours.

Contact Paul at 031-3129795 - 0833256000 - agency@viper.co.za


2016 Directories

We have limited stocks of 2016 Directories available @ R450 each (VAT inclusive). We also offer 12 months’ access to the Directory online at the same price.

Email tony@svmag.co.za for details


  

Contact us

News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za

Next newsletter: June 13, 2016.

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Our website www.svmag.co.za

 

 

 

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