S&V Weekly Newsletter Vol.2 No.24, June 20, 2016
S&V Footwear and Leather Goods / S&V African Leather/ S&V Protect
Please note: Click on any ad to go to the advertiser’s website
Credit Guarantee probes Kit Group deal
Johannesburg (SA) – Credit Guarantee Insurance Corporation (CGIC) has put on hold a decision to put M1 Latex Products (Pty) Ltd, trading as The Kit Group, into liquidation, following an investigation, Gideon Bochedi, GM claims & collections at CGIC, said today.
He said M1 Latex Products had been negotiating for about 9 months to buy a competitor, Jade Corporate Clothing Concepts (Pty) Ltd, when in April, as a result of a cash flow problem, Sasfin Bank had perfected a notarial bond it held over M1 Latex’s movable assets.
Those assets were then sold to Jade, which had since also taken over the contracts of all M1 Latex staff, and which is in the process of having the lease on M1 Latex’s premises transferred to it. Jade was and is in business rescue.
The intention is to re-open The Kit Group, in the same premises, with the same staff, and the same stock, “while creditors have been left unpaid”, he said.
He said Jade had been advised to ‘regularise’ the deal, and to pay for M1 Latex Products’ customer base. Those funds would be used to pay creditors.
He estimated CGIC represented 50%-60% of M1 Latex Products’ trade creditors, who were owed around R6 million, but he was still awaiting a full list of creditors.
He said this week he would also be meeting other parties, including attorneys representing Sasfin, to discuss the sale of M1 Latex Products’ assets to Jade.
SABS testing: ‘Some movement’
Pretoria (SA) – At the first meeting between the SA Bureau of Standards and a working group of its footwear customers over its testing policies on June 9, the SABS had agreed it would test individual components “where there is a SANS spec”, working group chairman Ernest Heunis said today.
He said there was still no agreement over partial testing of complete footwear – an industry demand.
The next meeting will be in the first week of August.
Offer for Simply Shoes being considered
Pietermaritzburg (SA) – Neil Button of Stowell & Co., the liquidator of mini-chain Simply Shoes, said today an offer for the business was being considered. He said he expected to be able to reach a decision on Thursday this week.
General Goods settles
Durban (SA) – Wage negotiations in the General Goods and Handbag Section have been finalised, according to National Bargaining Council general secretary and principal officer, Gerald Naidoo.
“At a mediation held in Cape Town on 14th June 2016, the parties to the General Goods and Handbag Sector reached settlement on the 2016 wage negotiations,” he wrote.
“The basis of settlement is as follows: With effect from 1 July 2016 an increase of 7% on the basis wage will be implemented and with effect from 1 January 2017 a further increase of 0.5% (calculated on the wage rate as they existed at 30 June 2016) will be implemented.”
Riva del Garda: ‘More competition in footwear’
Riva del Garda (Italy) – Fashion clothing chains are looking for a slice of the footwear business, and luxury brands are introducing cheaper ranges. These are among the symptoms of “a footwear sector in turmoil”, according to Riva del Garda Fierecongressi chairman Roberto Pellegrini in his post show report last week.
“This edition has brought us back to the image of a sector that is changing...We have seen new kinds of visitors, for example from large fast fashion chains, which started off in clothing and are now looking at the footwear sector, as well as new purchasing methods from the buyers.”
Riva del Garda Fierecongressi MD Giovanni Laezza said some companies were looking for alternative ways to compete at international level. “A number of luxury brands, for example, are considering running a medium level collection alongside their main collection, where the quality guaranteed by the brand can also be offered at a lower cost and with a faster response rate to market demands. It is similar to what has happened to the world of clothing with the introduction of fast fashion. This evolution opens up significant prospects for our event too, which could well become the key hub for this type of production.”
They Said It
"I’ve got [birding field guide books] Roberts and Newman but I must confess I’m not a birder. I use them to press my trousers." - Cecil Smith, former MD of Pick a Pair and John Craig, now retired to Umhlanga. He was explaining that his email address, which includes the word ‘turaco’ (the new name for loeries), was coincidental.
ABSA Agri Trends 14/06: Hides & skins prices
The average hide price over the past week was R15.08/kg green. Hide prices are determined by the average of RMAA and independent companies.
The average price for Dorper skins was R58.00/skin and Merino was R87.27/skin.
| 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 |
| 29/03 |
13.85 |
63.85 |
88.37 |
| 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 |
| 31/05 |
14.60 |
54.09 |
89.48 |
| 07/06 |
15.01 |
60.42 |
99.13 |
Birthdays this week
20/06/19??: Patricia Khumalo, the DTI, Pretoria.
22/06/1952: Tony Bradshaw, left the industry, formerly Jack & Jill [closed], Port Elizabeth.
21/06/1969: Du Toit Kruger, KKI, Oudtshoorn.
24/06/1978: Ashveer Kallichurum, Shoe Component Supplies, KwaDukuza.
24/06/1968: Meshi Sunker, Soviet Group, Johannesburg.
25/06/1976: Scott Croney, agent, East London.
25/06/1983: Sylvia Steyn, Fashion House Rules, Johannesburg.
26/06/1935: Jurgen Wedekind, retired, formerly Bellstedt, Durban.
26/06/1945: John ‘Zorb’ Caryer, retired, formerly Camdeboo Meat Processing, Graaff Reinet.
In Memoriam this week
21/06/1992: Jonathan Greenblatt, Richleigh Shoes [closed], Johannesburg.
22/06/2010: Boris Levin (b. 03/07/1935), footwear agent, Johannesburg.
24/06/1995: Anand Singh, Angel Footwear Manufacturers, Durban.
25/06/2002: Gerald Haug (b. 28/01/1924), Bondseal [closed], Pinetown.
Do you have any names you’d like to add to our list of birthdays and In Memoriam? Please send the details.
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 27, 2016.
Should you wish to subscribe email tony@svmag.co.za
Our website www.svmag.co.za
|
