S&V Weekly Newsletter Vol.2 No.46, November 21, 2016
S&V Footwear and Leather Goods / S&V African Leather/ S&V Protect
This Newsletter is sponsored by SAFLIA
Please note: Click on any ad to go to the advertiser’s website
Stuttafords: Business rescue plan ‘gives changes a chance to work’
Cape Town (SA) – Stuttafords has a “reasonable” chance of survival, the business rescue practitioners who are overseeing the chain say. Neil Miller, a partner in Mazars, answered several questions:
Does Stuttafords stand a realistic chance of survival? The BRPs believe there is a reasonable prospect of success with the Business Rescue of Stuttafords
If so, is the more likely route via finding an investor or trading its way out of its difficulties? All options are being, and will be, considered to maximize recovery under the Business Rescue Plan. Our primary route (at present) is one that is focused on rescuing the company by trading.
Can you give me any indication about remedial action that is planned? The Business Rescue Process is being used to give the Company the necessary breathing space its needs to restructure its affairs during a payment moratorium. A significant amount of work was done within the store base (and operational infrastructure) over the last year, which needs to be taken advantage of (and in some cases used for the first time) moving forward. Outside of a minor head-office restructure no other 'remedial action' is contemplated at this point.
Can you give me any details about what is owed to creditors, and who they are? The main creditors are the Shareholders and the Company's Banker. Details of all claims will be provided in the Business Rescue Plan
Is there any indication how footwear and leather goods performed in relation to other products in the Stuttafords mix? Accessories and Footwear constitute 5% and 7% respectively of total sales and continue to perform relatively well (in terms of stock turn and sell-through). Price-point resistance is certainly more prevalent within certain brands, specifically those incorporating a leather content. – [+27 (0)21 818 5074, Neil.Miller@mazars.co.za]
Sutherland Tannery: Deal ‘imminent’
Pietermaritzburg (SA) – Negotiations between the business rescue practitioners handling Sutherland Tannery (Pty) Ltd and 3 different interested parties may result in a deal as soon as this week, Neil Button of Stowell & Co. said today.
He said there had been “a lot of discussions” with 2 parties. “A third party joined the fray on Friday, and we’re close to a deal with him. We’re meeting on Thursday.”
He said all parties to the negotiations, including the Sutherland directors, had signed confidentiality agreements, precluding him from identifying them.
Barksole merges with Kurgan Kenani
Cape Town (SA) – Repair chain Barksole has merged with leather goods manufacturer Kurgan Kenani.
In terms of the deal, which was effective from October 1, Barksole is now owned by Kurgan Kenani. Kurgan Kenani MD Daniel Kurgan is group MD and majority shareholder, and former Barksole MD Rod Bloom is now operations director and a shareholder in the group.
More details in the next S&V Footwear and Leather Goods Magazine next week.
Zambia leather, textile expo in December
Lusaka (Zambia) – Zambia will hold its “first ever” leather and textiles expo from December 12-16, according to a release from the Ministry of Commerce, Trade & Industry, forwarded to us by Stephen Kanyanta, chairman of the Zambian Leather Industries Association (ZALIA).
The expo is scheduled to be held at the Mulungushi International Conference Centre. Contacts are Gilbert Chisenga (+260 978 23 1014) and David Mweemba (+260 977 82 7085).
Kanyanta’s contact details are +260 977 99 9073, shoeproduction@zambeef.co.zm.
Crocs part of Ares Holdings
Cape Town (SA) – Six months after the event, Ares Holdings has announced the acquisition of Crocs South Africa (Pty) Ltd.
Ares Holdings is running the Crocs business under the name Freeform Company, managed by Peter Cloete. The existing team in Cape Town has been supported with new key management staff in order to grow the brand in both the wholesale and retail sectors.
ATF post show report
Cape Town (SA) – Visitor numbers to this year’s Apparel, Textile & Footwear (ATF) Fair were over 1 200, substantially up on last year’s figures, the organisers reported.
Organiser William Scalco said it was also apparent that many visitors returned for follow-up visits.
The dates for next year’s Source Africa are March 8 & 9, and for next year’s ATF are November 15-17, both at the CTICC, Cape Town.
New stores in Menlyn Park
Pretoria (SA) – An Under Armour store – the second in SA – opened in Menlyn Park Shopping Centre on Saturday (19/11).
A new Crocs store will open in the same centre on Friday (25/11).
SAFLIA Mancom meeting
Durban (SA) – The Southern African Footwear & Leather Industries Association (SAFLIA) will hold its last Mancom meeting for the year on December 1. Among other matters on the agenda, it will elect a chairperson for the next 3 years. The present chairman is Noel Whitehead of Jordan Shoes. It will also be the first meeting for new board member Jacky Hay of The Little Slipper Co.
New Balance refutes Pro-Trump claims
by Emily Goldman. Posted on November 16, 2016 in Footwear
New Balance released a statement Tuesday regarding claims that the company leaned Pro-Trump in the 2016 presidential election. The controversy began when Wall Street Journal reporter Sara Garman tweeted comments made by Matt LeBretton, New Balance vice president of public affairs. The tweet read: “The Obama [administration] turned a deaf ear to us and frankly [with] President-Elect Trump we feel things are going to move in the right direction.” – [https://sourcingjournalonline.com/new-balance-refutes-pro-trump-claims-instagram-post/]
Reader Request
Start-up brand looking for manufacturer
Johannesburg (SA) – I’m currently looking for a really good/professional manufacturer in South Africa, in Gauteng that can design and manufacture men’s and ladies’ sneakers and heels for ladies. I have my own business called Oh Wow Productions and would like to design and manufacture my own sneakers and heels with my logo on. – Owen Harris [Owen.Harris@fnb.co.za]
ABSA Agri Trends 15/11: Hides & skins prices
The average bovine hide price over the past week was R15.24/kg green. Hide prices are determined by the average of RMAA and independent companies.
The average price for Dorper skins was R35.00/skin and Merino was R78.75/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 |
| 14/06 |
15.08 |
58.00 |
87.27 |
| 21/06 |
15.11 |
56.50 |
92.27 |
| 28/06 |
15.25 |
55.42 |
94.23 |
| 19/07 |
15.30 |
50.42 |
92.98 |
| 26/07 |
15.42 |
46.82 |
89.06 |
| 16/08 |
15.30 |
39.92 |
79.52 |
| 23/08 |
15.29 |
38.77 |
78.13 |
| 31/08 |
15.32 |
43.78 |
65.51 |
| 06/09 |
15.31 |
35.82 |
76.98 |
| 13/09 |
15.33 |
34.80 |
80.91 |
| 27/09 |
15.23 |
32.00 |
74.62 |
| 04/10 |
15.07 |
30.33 |
76.17 |
| 11/10 |
15.22 |
30.50 |
72.78 |
| 18/10 |
15.16 |
29.00 |
77.08 |
| 25/10 |
15.17 |
30.36 |
77.50 |
| 01/11 |
15.17 |
34.58 |
80.38 |
Birthdays this week
21/11/1950: JK Strydom, Werda Humansdorp Beleggings, Humansdorp.
23/11/1959: Bernice Kalakazinos, Toffee Clothing, St Francis Bay.
23/11/1970: Premilla Govender, Dynamic Engineering, Durban.
23/11/1966: Cornelio M Sunduza, Dadu Leathers Zimbabwe.
23/11/1938: Dave Wilson, retired, formerly Barker Footwear, Cape Town.
25/11/1952: Elaine Botha, Velle Shoppe, Heidelberg.
25/11/1932: Neville Horwitz, agent, Johannesburg.
25/11/1977: Wayne Hockly, Sondor Industries, Cape Town.
26/11/19??: Ed Duthie, retired, formerly Bata Zimbabwe.
26/11/1967: Preggie Govender, Dynamic Engineering, Durban.
26/11/1974: Salman Jonas, Fred Footwear, Port Elizabeth.
In Memoriam this week
21/11/2009: Terry Batchelor (b. 30/10/1942), Intershu, Johannesburg.
22/11/1992: Jimmy Shankland, Angels Shoes [closed], Cape Town.
22/11/1994: Chris Claassen, Futura Footwear, 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
Dakotas seeks agent
AGENT WANTED to sell DAKOTAS in the Free State and Northern Cape. Contact Stan Rabinowitz on 083 310 2687 or stan@footweardirect.co.za
Experienced footwear agent seeking agencies for Gauteng
Has many years experience in men’s, ladies’, children’s footwear.
Has connections with chain stores and mini chains and independent shoe stores.
Contact Basil Tannenbaum
Tell 011 6484801
Cell 082 4970854
Contact us
News & Classifieds: Tony Dickson, +27 (0)31 209 7505, tony@svmag.co.za
Next newsletter: November 28, 2016.
Should you wish to subscribe email tony@svmag.co.za
Our website www.svmag.co.za
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