Publisher of leading trade magazines for the Footwear, Leather-goods, Leather & PPE industries

S&V Weekly Newsletter Vol.4 No.14, April 9, 2018

This Newsletter is sponsored by SAFLIA

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


Steinhoff to sell stake in STAR Ltd

Steinhoff International Holdings N.V. yesterday (Wednesday, April 11) announced that it plans to sell 6% of Steinhoff Africa Retail Ltd (STAR), but that it intends to remain the majority shareholder. STAR includes major footwear and apparel chains Ackermans, Dunns, John Craig, Pep/Pep Africa/Powersales, Refinery, Shoe City and Tekkie Town, as well as furniture, homeware, hardware and computer chains. The statement read:

Launch of placing of up to 200 million shares in Steinhoff Africa Retail Limited
Steinhoff refers to its quarterly update published on 28 February 2018 in which the Company informed the market that it is continuing to take steps to refinance or redeem the debt within its South African operations.
       In line with these stated steps, Steinhoff has decided to launch an accelerated book-build of up to 200 million ordinary shares in Steinhoff Africa Retail Limited (“STAR”) (“Placing Shares”) (the “Placing”), subject to acceptable pricing being achieved and certain additional conditions.
       Steinhoff, through an indirect wholly owned subsidiary, currently owns c. 77% of the issued shares in STAR. Subsequent to the successful sell-down of its interest in KAP, Steinhoff has decided to dispose of up to c. 6% in STAR in order to settle its remaining South African debt. Furthermore, at the time of STAR’s listing in September 2017 it achieved a free float of c 14% compared to the minimum 20% required by the JSE. The JSE granted STAR a dispensation on the basis that the free float would be increased to 20% over time. This envisaged sell-down will increase STAR’s free float to the requisite c. 20% as required by the JSE, and is expected to enhance liquidity in STAR’s shares.
       Steinhoff continues to view STAR as a strategic investment.

Information relating to the Placing: The Placing Shares will be offered to qualifying institutional investors only (which includes private client platforms in South Africa), being investors to whom the offer may be lawfully made without having to file or register any offering or related documentation with any securities regulatory authority in any jurisdiction, and the Placing does not and will not constitute, nor is it intended to constitute, an offer to the public to purchase any shares.
       The book will open with immediate effect and is expected to close as soon as possible. Steinhoff reserves the right to close the book at any time. Pricing and allocations will be announced as soon as practicable following the closing of the book.
       The Placing will be carried out by Investec Bank Limited (“Investec”) (Investec being the “Sole Bookrunner”).
       In line with Steinhoff’s intention to retain the remaining interest in STAR, Steinhoff has agreed to a 90-day lock-up period, subject to customary carve outs.

Information relating to STAR: Information on STAR, including its most recent annual report, interim financial results, investor presentation and trading update, can be found on its website at It should be noted that Steinhoff bears no responsibility for any information included on STAR’s website.

Information relating to the Placing: Investec is acting as Sole Bookrunner for the Placing. For further information, please contact: Carlyle Whittaker, +27 (0)11 286 9994,



Chic: IDC explains payment shortly before liquidation

Johannesburg (SA) – The Industrial Development Corporation put over R9 million into Chic Shoes in December - a month before the directors put the company into liquidation - "as part of an orderly wind down process", IDC executive for corporate affairs, Zama Luthuli, has told S&V.
       Asked why the IDC had put the money into a failing business, she wrote:
On the 18th December 2017, IDC made an "investment" of R9 210 000 into Chic Manufacturing. Prior to the investment made in December 2017, the IDC earlier in the year on the 28th of April 2017, injected R6m into Chic Shoes. The directors of Chic shoes (including some of its new shareholders) placed the company into liquidation on about 22 January 2018. Of keen interest to the Journalist is, why would the IDC commit such enormous amounts of money to a company that would later go belly up-in a matter of months?
       A historic perspective is perhaps important for us to provide an adequate and clear response. As you would be aware, the industry has faced a number of challenges but within this there remain opportunities. IDC is one of the major funders of the clothing, textiles, leather and footwear sector, with the objectives of not only sustaining the sector but increasing competitiveness and supporting growth and employment. The IDC has supported Chic Shoes almost from its inception and funded its growth.
       Of significance in the operation of this business, the downturn in the economic environment coupled with depressed consumer spend (in this instance - on genuine leather ladies-pumps which were the company’s flagship product) resulted in a decline in orders. Chic Shoes needed space for turnaround strategies, and as part of this approach, IDC provided a tranche of funding. However, the company did not arrive at a strategy which demonstrated clear viability and a decision was made to wind down the company towards the end of 2017.
       The additional funding was part of the orderly wind down process referred to above. This included retrenchment packages for the remaining employees and for the maintenance of assets with a view to finding a buyer who would re-open the factory and re-employ some, if not all the employees.

We hope to carry further information in the next issue of S&V Footwear & Leather Goods Magazine shortly.


Chic liquidators

Durban (SA) – Jochen Eckhoff of CK Trust and Thomas van Zyl of Mazars Recovery & Restructuring have been appointed joint liquidators of Chic Shoes.



SLTC Countdown - 7 weeks to go

When: May 18-20.
Where: Villa Paradiso in the Hartbeespoort Dam area.
The speakers are:
- Dr Geoff Tomlinson, R&D Manager, UCL Company. Topic: Vegetable tanning - art or science?.
- Dr Jay Irkhede, director: leather & footwear at the DTI. Topic: Industry status, policy and programmes.
- Ivan Peloso, Alpe. Topic: TBC
- Dr Clive Jackson-Moss, director, International School of Tanning Technology. Topic: Student answers to all your technical questions.
- James Daniel, Stahl. Topic: TBC.
- 'Sam Setter', the acerbic columnist in World Leather magazine. Topic: TBC.
- Quintin Marais, Rolfes. Topic: TBC.
- Matteo Cabrini, Thema Systems. Topic: TBC.

SLTC presentation abstract: Vegetable tanning – art or science?
The presentation covers vegetable tanning from many angles, including some key definitions, the history of vegetable tanning, the types, sources & typical structures of vegetable tannins and how the tannins are extracted & modified commercially to yield the desired properties. The talk will address aspects influencing tannin penetration and fixation, a comparison of vegetable- & chrome-tanned leather properties and defects observed in vegetable-tanned leathers. Despite being an industry replete with many examples of both art and science, more reproducible and impressive results have been realised recently through approaching this subject from a methodical, scientific point-of-view and a fundamental understanding of the chemistry involved in these important processes.



Why we shouldn't tempt fate

After our brave commitment last week to be out on time this week, we owe readers an explanation as well as an apology. We had been without land lines for 10 days when Telkom repaired them on Monday morning. Almost exactly an hour later, Vumatel, which is installing internet cables in the area, accidentally sliced through the electric cable for most of the suburb, cutting off not just the phones, but all power as well. Power was only restored on Tuesday night at 21.30. They drilled through the water main yesterday (!), but that didn't affect production.


Exchange rates


  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




Birthdays this week

09/04/1970: Rob McCann, Treadsafe, Pinetown.
09/04/1976: Carlo Grillenzoni, agent, Cape Town.
10/04/1948: Gert Muller, Sonop, Bethlehem.
10/04/1958: Ismail Shah, Evoné, Pietermaritzburg.
11/04/1957: Isak Jacob Viljoen, Health Shoes & Accessories Centre, Nelspruit.
11/04/1966: Melanie Rothman, BBF Safety Group, Pinetown.
11/04/1976: Janine Govender, Nikkita Footwear, Durban.
12/04/1922: Harry Hoyte, retired, formerly Hoyte Shoes/agent, Durban.
13/04/1970: Jason Wilkins, agent/retailer, Johannesburg.
13/04/1976: Gareth Kemp, Apollo Brands, Cape Town.
14/04/1946: Pierre Lailvaux, formerly Service Agencies [closed], Durban.
15/04/1971: Jacques Ergas, Red Planet Shoes, Cape Town.


In Memoriam this week

13/04/2014: Theuns JK Viljoen (b. 25/12/1942), Divac, George.
14/04/2015: Neville Horwitz (b. 25/11/1932), agent, Johannesburg.

Do you have any names you’d like to add to our list of birthdays and In Memoriam? Please send the details.


ABSA Agri Trends 06/04: Hides & skins prices

The average hide price over the past week was R8.86/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 R36.67, and for Merino skins was R82.50.

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


Trade Fair dates

For a list of local and international trade fairs covering footwear, leather goods, leather and PPE, visit our website:


Classified Adverts


Fusion Leather in Atlantis, Western Cape is looking for a Leather Finisher.
Must be a South African with 5+ years experience in Leather Finishing.
Please email CV’s to


The Southern Cape Regional Footwear Cluster is based in Great Brak River and supplies services and training to its members in the Southern Cape (Great Brak River and Oudsthoorn) as well as in the Western Cape (Cape Town). It is a Non- profit Company, funded by the DTI and its members and was establish to, among other objectives, develop and train future generations of well skilled Supervisory and operator production employees for the Footwear Industry.

SCRFC, wishes to recruit a Footwear Technologist who is a practical, energetic and an experienced footwear manufacturing/production specialist. It is expected that the successful candidate will have practical knowledge in all facets of Shoemaking and Manufacturing processes including Management and Industrial Engineering experience. The position is a fixed term contract and the person will be based in the Southern Cape. Remuneration is negotiable and will be on a Cost to Company basis. Benefits will be limited to those prescribed by legislation.

Please e- mail a detailed CV plus qualifications to Mrs Julia Paulse at


Contact us

News & Classifieds: Tony Dickson, +27 (0)31 209 7505,

Next newsletter: April 16, 2018.

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