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S&V Weekly Newsletter Vol.4 No.27, July 9, 2018

This Newsletter is sponsored by SAFLIA

Please note: Click on any ad to go to the advertiser’s website

 

Footwear industry strike
On Friday, both unions - NULAW and SACTWU - issued a strike notification, with strike action to begin at 10.00 today.

 

Bernard Mostert: Watch this space?

George (SA) – Former Tekkie Town CEO Bernard Mostert, who's resignation with other senior management led to a mass resignation of Tekkie Town and Steinhoff Africa Retail (Star Group) staff in late June, is considering a return to retail.
​       "Will we start again?" he said last week. "There's not a simple answer.
       ​"Quite a few retailers have approached [former Tekkie Town COO] Dawie [van Niekerk] and I with proposals, and some of them are quite intriguing."
       ​He said the approaches included businesses seeking their expertise - "They like the fact that we grew Tekkie Town organically and they seem to appreciate the culture of ownership we cultivated" - and others looking to sell.
       ​"If indeed we were to start over, it wouldn't be with 1 store, so buying an existing business would give us a running start."
       ​The outcome of court cases between former Tekkie Town management and Star was also an issue, he said. "It will take time to manage the complexities of these legal cases and that in itself needs to be a focus area for a while.
       "STAR claims that we have restraint of trade agreements but our Senior Counsel’s advice is that whatever restraints are alleged can be challenged successfully."
       ​He said he and van Niekerk and other former top managers Mike Brown, Gert Claassens and Willem Wait were assisting the 110 former Tekkie Town staff in George who had resigned, along with another 20 from the Star Group, financially and through counselling. He described their loyalty as "an eye-opener".
       ​"When [Tekkie Town founder and former Star chairman] Braam [van Huyssteen] sold to Star, we put aside R100 million for people who were associated with Tekkie Town or with us. We considered investing it in Steinhoff shares, but thankfully we didn't, and it will go quite a long way to  looking after those people."
       ​Of their decision to resign, he said: "We didn't resign out of loyalty to Braam. If it had been, we would have left when he did. Our commitment was always to Tekkie Town and Speciality and the optimal results we delivered. We felt we no longer had the support of top management and as a result it was no longer possible to manage the business. In business, you need that support for the best outcomes and the business deserves a leadership with no friction at the very top. Braam was a very tough boss, but he always supported our decisions. Braam was also very firm that we work for the business and that the business does not work for us, so to speak."

 

STAR Group: 'Update on Tekkie Town'

Cape Town (SA) – Steinhoff Africa Retail Limited on Friday said it had obtained an interdict against unnamed "previous senior management". Under the headline 'Update on Tekkie Town', the statement read:

STAR has today obtained from the Western Cape High Court a court order on an urgent basis against four senior members of the previous Tekkie Town management team interdicting the respondents from conducting certain actions against STAR which include interference with the Tekkie Town Information Technology System and destabilising operations.
       CEO Leon Lourens commented: “It is regrettable that we have had to take such legal action. We remain focussed on the continued success of STAR and Tekkie Town with our determined and committed team and will focus on continued growth. Our ethics and values have never changed and never will. We will continue to use the necessary legal process available to protect our business.”
       “The interim management and support team, together with staff members who have remained in the business, continue to operate Tekkie Town in a stable manner. The supply chain is operational, all stores are trading and performance is in line with targeted levels. The performance of all other STAR businesses remains unaffected”. Tekkie Town continues to be an important part of STAR, operating more than 380 stores, and providing employment to more than 3 000 employees.

 

 

House of Busby takeover approved

Johannesburg (SA) – The Competition Commission this morning announced that it has approved the takeover of The House of Busby by Candur Active Value Investments (Pty) Ltd. The release reads:

The Commission has approved, without conditions, the proposed transaction whereby CAVI intends to acquire New House of Busby.
       CAVI, through its subsidiary, NewSosco, is active in the manufacture and wholesale distribution of ladies' clothing to South African retailers. NewSosco manufactures ladies' clothing under in- house brand for Edgars, Milady's, Foschini, Truworths, Makro and Queenspark. CAVI is active in the manufacture and wholesale distribution of perfumes, make-up and related beauty products under its own brand names and also holds rights to distribute and sell certain licence brands in South Africa. The products include sun screen or protection products, self-tanning products, hair care styling sprays, perfumes and fragrances, lip ice, wax and lip protection, decongestant, skincare products and mosquito repellents.
       Busby wholesale is responsible for the design, manufacture, and wholesale distribution of clothing (ladies' and men's clothing), luggage, handbags, accessories, eyewear and footwear for its own brand names and private labels. In addition, Busby wholesale is also active in the local, non-branded wholesale sector. Non-branded (private) labels offered by Busby wholesale include handbags (mainly in PU or PVC and cotton, straw and canvas), wallets and back to school bags (including tog bags, pencil cases and lunch bags). The House of Busby (under its Saks division) manufactures products for retailers under their in-house brands, specifically ladies' underwear, active wear, sleep wear, scarves, gloves, hats, belts and handbags. Further, Busby supplies its products to other retail stores across the country, such as Truworths and Edgars. Busby Retail trades the House of Busby’s products under 18 international and own brands, such as Guess, Aldo, 3INA, Forever New and Women’s Secret, amongst others.
       The Commission found that the proposed transaction is unlikely to substantially prevent or lessen competition in the market for the wholesale distribution of ladies' clothing. In addition, the proposed transaction is unlikely to result in any job losses or raise any public interest concerns.

 

Retirement

Durban (SA) – Tony Ford has announced that "After a long 44 years, I am delighted to tell you that I have left the shoe business". He said his business, Naturfit, had ceased to trade.

 

Sutherland Tanneries: Claims

Pietermaritzburg (SA) – In an email on July 5, joint liquidator Glen Usher, of Usher Attorneys, invited concurrent creditors to submit claims.
       "I refer to the Offer of Compromise which was accepted by the creditors and employees on 6 April 2018 and which was made an Order of Court on 25 April 2018...The effective date in respect of your claim is 1 September 2017. In terms of the compromise, an amount of R1 million is set aside for the distribution, on a pro-rata basis, to all concurrent creditors who have submitted claims. Should you fail to submit your claims by close of business on 20 July 2018, you will not participate in the dividend."
       Forms are available from tasha@usherlaw.co.za

 

Poetic justice

A chewed-up shoe is all that is left of one of the poachers who broke into a South African game reserve to hunt rhinos, and ended up eaten by a pride of lions.
At least three hunters are believed to have been devoured by the predators at the Sibuya Game Reserve near Kenton-on-Sea in Eastern Province, South Africa, earlier this week. - Source

 

Award

Tony Naidoo and Kishor Harrilal with their award.

Shan Pillay
Two Pietermaritzburg leather skills training officer, Tony Naidoo and Kishor Harrilal, Directors of the Centre of Excellence for Leather Skills (Pty) Limited were proud receipents of the Thuma Mina Award for outstanding work from FP & M SETA.
The pair started out in 2016 and established the Centre Of Excellence for Leather Skills at Indaleni outside Richmond, targeting unemployed youths from Richmond's rural areas.Some hundred learners,taught the skills of shoe making in all departments have passed through the Centre and are ready to be absorbed into the footwear industry.The Centre has a roll of 40 learners.

"When we started the Centre we had a vision of two stages.The first being providing the necessary skills in the manufacture of footwear and the second stage was to have a footwear factory built with the assistance of the different tiers of Government,so full time employment could be afforded to students who qualify and exit the Centre", the two directors said.

 

They Said It

"Somebody had to take the photo… plus I was still all messy from actually working on Monday morning." - Stanger Textile Industries director Sureshan Reddy explaining why he wasn't in any of the photos that will appear in an article about the company appearing in S&V Footwear & Leather Goods Magazine out later this week.

"Business at the moment is like taking an anorexic girl on a date and she won't eat anything." - Colin Snodgrass of SV Agencies in Port Elizabeth.

 

Exchange rates

Source: http://www.x-rates.com/calculator/

 
  Euro € GBP £ US $ Yuan Renminbi ¥
11/12/2017 R15.82 R17.99 R13.40 R2.03
05/01/2018 R14.86 R16.69 R12.33 R1.90
13/01/2018 R15.14 R17.03 R12.41 R1.92
22/01/2018 R14.76 R16.75 R12.08 R1.88
26/01/2018 R14.74 R16.79 R11.86 R1.87
05/02/2018 R14.96 R16.89 R12.02 R1.91
12/02/2018 R14.64 R16.51 R11.95 R1.88
16/02/2018 R14.43 R16.30 R11.63 R1.83
23/02/2018 R14.19 R16.12 R11.54 R1.82
05/03/2018 R14.60 R16.39 R11.85 R1.86
12/03/2018 R14.58 R16.43 R11.82 R1.86
16/03/2018 R14.72 R16.70 R11.97 R1.89
23/03/2018 R14.53 R16.60 R11.75 R1.86
03/03/2018 R14.58 R16.62 R11.83 R1.88
11/04/2018 R14.75 R16.91 R11.93 R1.90
16/04/2018 R14.89 R17.23 R12.04 R1.91
23/04/2018 R14.99 R17.11 R12.27 R1.94
30/04/2018 R15.06 R17.16 R12.47 R1.96
07/05/2018 R14.96 R16.98 R12.55 R1.97
14/05/2018 R14.60 R16.54 R12.21 R1.92
22/05/2018 R14.84 R16.92 R12.61 R1.97
28/05/2018 R14.47 R16.55 R12.43 R1.94
04/06/2018 R14.70 R16.78 R12.54 R1.95
11/06/2018 R15.46 R17.55 R13.10 R2.04
18/06/2018 R15.63 R17.83 R13.45 R2.09
25/06/2018 R15.89 R18.05 R13.60 R2.07
02/07/2018 R16.10 R18.18 R13.87 R2.08
09/07/2018 R15.79 R17.90 R13.41 R2.02

 

 

 

09/07/1942: Cecil Fenwick, Saddler Belts & Leathercraft, Durban.
09/07/1949: Bryn Proctor, ?, formerly Crown Footwear, Pinetown.
09/07/1958: Johan Kriel, Bolton Footwear, Great Brak River.
09/07/1969: Hein Jonker, Ostrich Products SA.
09/07/1975: Gian-Paolo Bresolin, left the industry, formerly Andreoli Shoes [closed], Pinetown.
10/07/1940: Erwin Metzger, Sanata Footwear, Durban.
10/07/1945: Colin Symons, retired, formerly Elco Plastics, Cape Town.
10/07/1970: Shelley Zhang, left the country, formerly Lavanda Shoes, Randburg.
10/07/1972: Annah-Mae Blair, The New Shoe Company, Durban.
11/07/1945: Maureen Liebenberg, retired, formerly Barker Footwear, Cape Town.
11/07/1964: Hafiza Shaikh, left the industry, formerly Amshu Distributors (closed), Greytown.
11/07/1975: Cassim Dawjee, Moola’s Fashion House, Newcastle.
12/07/1970: Guy Blake, agent, Cape Town.
13/07/1954: Peter Handley, Coventry Shoes, Durban.
14/07/1969: Veronica Clausen (nee Haupt), Clicka Heels, Johannesburg.
14/07/1971: Laurence Lotzoff, Dale Footwear, Johannesburg.
15/07/1933: Joe Powell, retired, formerly Footwork, Trafalgar.
15/07/1971: Philipp Rein, Rein Tanning, Mossel Bay.

 

In Memoriam this week

02/07/1997: Clemente Villani, Villani Shoes, Johannesburg.
02/07/2010: Justin McCarthy (b. 29/01/1958), Groundcover, Curry’s Post.
04/07/2010: Kasieprasad Pattundeen (b. 29/12/1924), Palm Footwear, Durban.
05/07/1999: Norman Berrill, freelance designer, Durban.
06/07/1996: Eric Waterworth, King Tanning Company [closed], Pietermaritzburg.
07/07/1993: Rob Scallan, Tuftex, Port Elizabeth.

Have you let us know about your birthday, or the birthdays of your colleagues? Our readers love this section, so please become part of it. This also applies to the In Memoriam section. Help us remember former colleagues.

 

ABSA Agri Trends 06/07: Hides & skins prices

Overall, the hide market sentiment remains bearish, in line with the weak international hide market. Shipments to Italy are expected to be limited as well, weighing on the market. There are also indications of oversupply in South America which further add pressure on the market. The average hide price over the past week was R7.04/kg green. NB* Hide prices are determined by the average of the RMAA (Red Meat Abattoir Association) and independent companies. The average price for Dorper skins was R32.14, and for Merino skins was R86.67.

Hide & skin price progression
Date Hides/Kg Dorper/Skin Merino Skin
19/01 15.34 45.56 81.38
24/01 15.17 40.92 89.52
31/01 15.10 46.00 94.55
14/02 14.65 47.33 95.29
15/03 14.25 39.30 78.75
24/03 14.13 45.27 94.45
28/03 14.07 45.27 94.45
04/04 14.83 41.92 87.58
11/04 14.68 41.92 84.12
19/04 14.77 43.85 92.32
25/04 14.75 41.25 92.27
04/05 14.79 43.33 92.69
10/05 14.75 40.50 88.41
16/05 14.58 40.83 90.96
31/05 14.62 40.50 87.95
09/06 14.58 41.82 96.35
23/06 14.40 40.42 101.25
29/06 14.30 41.36 98.44
07/07 14.33 43.33 100.94
13/07 14.37 44.44 114.58
28/07 14.14 43.64 97.50
04/08 14.16 43.69 99.64
14/08 14.08 38.99 92.75
18/08 13.70 43.18 98.96
25/08 13.93 43.75 100.96
01/09 13.14 44.09 101.25
08/09 12.88 41.82 100.83
21/09 12.64    
03/10 12.50    
11/10 12.52    
20/10 12.23 39.30 110.23
27/10 12.12 37.30 94.32
02/11 12.19    
10/11 12.24 37.00 101.75
30/11 11.82 32.56 94.25
07/12 11.76 35.50 92.50
14/12 11.53 35.50 91.86
02/02 10.39 32.50 92.22
09/02 10.17 33.13 91.27
16/02 9.94 32.50 88.26
16/02 9.94 32.50 88.26
16/03 9.62 33.75 90.50
23/03 9.56 32.22 87.63
06/04 8.86 36.67 82.50
13/04 8.98 35.00 81.25
23/04 8.40 35.13 86.00
26/04 8.18 34.13 86.11
07/05 7.89 33.33 83.13
18/05 7.71 33.50 82.22
25/05 7.78 31.38 86.06
01/06 7.74 30.71 95.89
08/06 7.43 31.67 87.50
15/06 7.67 32.11 87.40
22/06 7.60 32.50 86.70
29/06 7.13 32.78 86.50

 

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

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  -SELF MOTIVATED
-TARGET DRIVEN INDIVIDUAL
-ABLE TO WORK UNDER PRESSURE
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-AGE REQUIREMENT 30YR-40YR OLD MALE OR FEMALE
EMAIL:CV TO  resourceh06@gmail.com




AGENCIES REQUIRED FOR KWAZULU/NATAL

Experienced well-established agents are seeking additional lines in Apparel and Footwear.
We have superb centrally situated showrooms and have years of experience in both Wholesale and Retail.


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       It seats up to 12 people around a table, and has space to add up to 15 more chairs in the room. You are welcome to view the room before hiring.
       For more information, please contact Louise on 031 266 1473 or louise@saflec.co.za.
We look forward to being of service.




  

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Next newsletter: July 16, 2018.

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