Leonie Barrie's apparel and textile industry blog - from just-style.com

just-style launches job and recruitment service

Thu, 02 Jul 2009 15:20:00 GMT

We've been talking about the new just-style job and recruitment service for some time now - and I'm pleased to say it has finally gone live after a lot of hard work and investment.

The revamped board is aimed at professionals and industry recruiters around the world, and offers an easy-to-use service that should take some of the pain out of the recruitment process.

Candidates can search for their ideal job via keyword, country, sector and salary range. They can also create a profile to ensure their job search is easily manageable and trackable within fully personalised pages.

Meanwhile, with over 100,000 individuals from the apparel industry visiting just-style's market-leading content every month, recruiters are presented with a captive audience of professionals. Each month, over 19,500 job pages are read on the site, by apparel and footwear industry employees eager to see the latest positions available.

This new service from just-style can be visited at www.just-style.com/jobs. Any recruiters who wish to use the service should contact the just-style recruitment team on +44 (0)1527 573 613.

Supplier pain falls under the radar

Wed, 01 Jul 2009 12:08:00 GMT

Beside part-mentions in domestic Asian newspapers, the thousands of job losses at Triumph International this week went relatively unnoticed by global media.

just-style broke the story that 3,616 jobs would be lost in the Philippines and Thailand on Monday (24 June), expecting a deluge of reports from international media and industry rags.

However, the story remains reserved to readers of just-style, together with local newspapers close to the action - like the Philippine Star.

Triumph will cease manufacturing and distribution centre operations in the Philippines and reduce manufacturing in Thailand, in a restructuring plan prompted by the downturn.

Meanwhile, unrelated to Triumph, rioting garment workers resisting pay cuts and unpaid salaries in Bangladesh have reportedly torched factories and warehouses leaving 100 injured.

The Bangladesh riots won some headlines, but Western media seems under-concerned that sloping retail demand is filtering through to Asian manufacturers on a dramatic scale. Indeed, the closure of a dozen stores or handful of shop assistants is more likely to stir the emotions of a consumer-driven West.

However, this coverage, or lack thereof, is unacceptable given the global nature of the apparel supply chain and increasing importance of 'manufacturing countries' in the design process.

The supply chain infrastructure and relationships in place today were not built overnight, and can't be jumped-started at the drop of a hat either.

It would therefore be dangerous for media outlets to underestimate the impact of overseas factory closures, especially in the apparel and footwear industry.

By Joe Ayling, news editor.

Trade bills snag on textiles

Tue, 30 Jun 2009 16:17:00 GMT

Never one to mince his words, apparel industry consultant Mike Flanagan believes the US' plans to make textiles produced in Pakistan's tribal areas eligible for import into the US duty-free is an idea that's about as loopy as "telling Americans that building garment factories in Yosemite would cure urban crime."

In this special analysis for just-style he explains that two new textile trade bills currently making their way through the US legislature are deeply unrealistic - and that their impact on apparel makers, importers and retailers could be damaging too.

ANALYSIS: New US trade bills unlikely to help apparel firms

Dress Barn tries onTween Brands

Mon, 29 Jun 2009 14:45:00 GMT

In a deal that took the market by surprise last week, off-price women's apparel retailer Dress Barn is set to acquire teen fashion retailer Tween Brands in a stock-swap agreement worth around $157m.

The transaction is due to close in the fourth quarter of this year, and will see Tween Brands - which targets 7 to 14-year-old girls through its 908 Justice stores - become a separate subsidiary of Dress Barn. The combined company will have net sales of around $2.4bn and operate 2,465 stores.

While some industry observers wonder what synergies there are between the two businesses, Dress Barn believes that adding the Justice chain will help to "diversify and complement" its existing career and casual fashion business. Tween Brands, meanwhile, will have its outstanding bank debt paid off. The companies also hope to generate cost savings through economies of scale in areas such as sourcing and real estate.

Changes are also taking place at athletic shoe and apparel retailer The Finish Line, which is to exit its unprofitable Man Alive business and focus instead on its core operations. The deal involves paying $7m in cash to a new company set up by the owner of the Jimmy Jazz chain - who will take control of 75 Man Alive and Decibel stores.

The urban apparel chain's poor performance helped push Finish Line to a first quarter loss of $608,000 as sales dropped 7.2% to $267.2m. By division, same-store sales for Finish Line fell 3.9%, while Man Alive plunged 39.1%.

Slumping sales in every geographic region except Asia coupled with restructuring charges to push sporting goods giant Nike Inc to a 30% drop in fourth quarter profit of $341.4m. Revenues fell 7% to $4.7bn. But most worryingly for the Beaverton, Oregon based firm, worldwide future orders for Nike-branded footwear and apparel scheduled for delivery between June and November - a key indicator of future sales - are down 12%.

More than six months after shuttering its 807 high street stores, the Woolworths brand has begun trading again in the UK as an online business - selling a range of products including its iconic Ladybird children's wear label. The relaunch comes after the two names were bought by online and home shopping retailer Shop Direct Group back in February, and there are now plans to introduce clothing, footwear and sportswear for older kids too.

Marks and Spencer, meanwhile, has come under fresh attack over its continued insistence that the powers of chief executive and chairman are combined under Sir Stuart Rose as executive chairman. In a research note to institutional investors, advisory firm PIRC is backing plans calling for the appointment of an independent chairman by July 2010. Sir Stuart has also tried to placate shareholders by foregoing a third of his share entitlement - worth an estimated GBP1.13m (US$1.8m).

Increase profitability - for free

Fri, 26 Jun 2009 17:07:00 GMT

UK clothing firms are being given an opportunity to let a leading business expert analyse their businesses with a view to increasing profitability and reducing costs.

What's not to like? Well the only downside is that they'll have to open their doors to a film crew from the BBC too, which is filming the results for a new TV series.

But with so many companies struggling to survive and grow through the economic downturn, I would have thought that the chance of introducing new ways of working - including engaging all workers in the day-to-day running of the business - would be an offer too good to turn down.

The free consultancy service is provided by top academic Dr Paul Thomas, who promises to work around the company and its existing commitments.

If you're interested in receiving Paul's help and would like to be part of a BBC series, contact Gemma Collins on 02920 322572 or Nick Andrews on 02920 323755.

Will Woolworths work?

Fri, 26 Jun 2009 14:37:00 GMT

Saddled with an estimated GBP385m (US$594m) worth of debt, jaded stores, rising rents and a business model that sold everything from sweets to electrical goods, garden furniture to clothes but struggled to compete with specialist retailers on either price or range, the demise of Woolworths earlier this year was long overdue.

But whether this outdated concept can be revived by a new way of selling - via the Internet - remains to be seen.

There's no doubt the combination of the well-known Woolworths name - in particular its popular Ladybird children's label - and the growth in online sales should make for a compelling story. And without the physical restrictions imposed by its stores, the brand now has the scope to sell a far wider range of items than it could before, including plans to introduce clothing, footwear and sportswear for older kids.

But there are also concerns that Woolworths' traditional customers may not be regular online shoppers, and that in the six months since the retailer's demise they will have switched their shopping for kids' wear to the likes of supermarkets Tesco and Asda, H&M, Primark and even Next and M&S.

But if there's anyone who can make Woolworths and Ladybird work then it must surely be Shop Direct. The retailer is aggressively shifting its business away from its more traditional mail order catalogues and onto the Internet.

The group's online sales now account for 56% of its total revenues, up from 18% three years ago - and it expects 70% of its GBP1.7bn (US$2.8bn) annual sales will be online by 2010/11.

UK: Woolworths and Ladybird brands return online

The "swoosh" recovery

Thu, 25 Jun 2009 18:34:00 GMT

Describing the route likely to be taken by the economic recovery, Nike's president and CEO Mark Parker said he favours the description of "a quick drop followed by a measured yet consistent recovery" rather than the more traditional V-shaped or U-shaped models.

Why? "They call it the swoosh recovery because it mimics the shape of our logo. I'm going to go with that one," he said.

Of course it remains to be seen whether this will be the emergent route, but it's clear from Nike's just-published fourth quarter and full-year results that there's still a long, slow climb ahead.

The market wasn't unduly phased by a 30% drop in fourth quarter profit to $341.4m, since this was largely due to $144.5m in charges for recent cost-cutting measures including reducing its workforce and restructuring its business.

The company was also able to blame a 7% drop in revenues on currency exchange rates, without which sales would have been flat.

But what is of particular concern is a 12% drop in worldwide future orders (a key indicator of future sales) for Nike-branded footwear and apparel scheduled for delivery between June and November this year.

By far the biggest challenge seems to be in apparel, where the macroeconomic conditions are hitting hardest. In the US, for example, apparel revenue tumbled 15% to $379.8m - whereas footwear rose 2% to $1.2bn and equipment revenues were up 2% to $85.5m. Futures orders as a whole for the US are down 4%.

Nike has made no secret in the past of its plans to consolidate its long-term sourcing strategy and streamline its supply chain operations so that it buys from fewer, larger factories to leverage economies of scale.

And with a more immediate need to take a "conservative position on inventory purchases generally" against this background of slowing apparel sales, it seems more than likely that there will now be "significant changes," as Parker put it, to "consolidate with our strongest and most innovative partners."

Shoes made for walking - and more

Wed, 24 Jun 2009 18:14:00 GMT

When did shoes stop being just...shoes? Nowadays it seems that looking good and protecting your feet from the elements are the least of their requirements; instead, a new generation of 'super shoes' packs benefits that range from correcting the wearer's posture to getting rid of cellulite, and some claim to relieve the symptoms of diabetes and arthritis too.

Even Reebok has stepped into the field with a toning shoe to "re-shape the butts and legs of women around the world." Its selling point is a new balance pod system invented by a former NASA engineer that tones key muscles by making them work harder.

But there are some multi-tasking shoe ideas that might be slower to get off the ground. How about metal detecting sandals for one?

No they're not a joke; inventor Hammacher Schlemmer describes them as "a way for beach combers to treasure hunt without carrying a handheld metal detector and wearing a bulky headphone." And if that's not enough, the sandals "allow you to unobtrusively locate buried artefacts as you stroll the beach."

A copper coil built into the right sandal - and powered by a battery pack that straps to your calf by an elastic band - creates a magnetic field and alerts you to the presence of metal up to 2' underfoot. Unobtrusive maybe, but I don't think the flashing red LED lights and "gentle vibration or clearly audible buzz" would allow you to stay inconspicuous for long.

Another alternative, perhaps, is the "social networking shoe." These Global Positioning System (GPS) sneakers come with Bluetooth capability and enable the wearer to be tracked by friends and family through their cell phones.

"People will be able to see where their friends are - and have a better idea of estimated arrival time - without having to call them. And, because the wearer doesn't have to be talking on the phone while driving, it will definitely improve safety."

Hmmm. I can certainly see the point of shoes that help keep tabs on kids or the elderly, but I'm not sure I'd want my every move tracked like that.

Fashion's legal loopholes

Tue, 23 Jun 2009 18:12:00 GMT

Is a product made in Europe of better quality than one made in China, Bangladesh or Thailand? In the eyes of many consumers the answer is probably "yes".

But do you know what 'made in Europe' really means? Many EU-based fashion companies do not advertise the full extent of their supply chains - and are exploiting a loophole that puts the origin of an item at the place it was last worked on.

So made in Europe could apply as equally to Albania as it does to Austria - as this Reuters article explains:

Made in EU - fashion's legal loopholes

Eddie Bauer back from the brink?

Mon, 22 Jun 2009 14:42:00 GMT

It has been a dramatic week for outdoor apparel retailer Eddie Bauer, which finally filed for bankruptcy protection after struggling for years with mounting debts and falling sales.

However, in a dramatic move the company immediately announced a proposed sale to private equity group CCMP Capital Partners for $202m in a so-called "stalking horse" bid, which could yet be matched or beaten by rival bidders.

Business is continuing as usual while the sale goes through thanks to interim financing from its current lenders of $90m, plus $100m to meet its ongoing requirements. This means all 371 stores will remain open as usual, and vendors and contractors will be paid.

"Eddie Bauer is a good company with a great brand and a bad balance sheet," said Neil Fiske, company president and CEO. The filing and sale have raised hopes this will mark a fresh start for an iconic name.

Just as expected there have also been changes at teen clothing retailer Abercrombie & Fitch, which is to shutter its struggling Ruehl chain after deciding to focus on its other brands. The decision comes a month after the retailer launched a strategic review of Ruehl, which caters to post-college adults - and will see the chain's 29 stores and related direct-to-consumer operations close by the end of the fiscal year.

The renewed auction of the assets of Filene's Basement has seen rival cut-price apparel retailer Syms emerge as the winner. Syms' US$62.4m joint bid with developer Vornado Realty Trust covers the leases for 23 Filene's Basement stores, along with the defunct company's trade name, inventory and distribution centre. Men's Wearhouse had originally been declared the winning bidder, but the auction was reinstituted after complaints from rivals.

In a major coup for fashion chain H&M, it is partnering with celebrity favourite footwear and accessory brand Jimmy Choo to launch a new collection in 200 of the retailer's stores around the world. The collaboration is particularly exciting because it is H&M's first shoe designer collection. It will also include bags plus a selection of women's clothing.

And finally, a row has broken out between rival US industry groups over whether US Customs and Border Protection is adequately enforcing trade laws affecting textile and apparel imports. The National Retail Federation is urging Congress to resist political pressure from the textile industry, which claims illegal textile fraud levels have reached record highs.

The textile executives want to see an overhaul the textile enforcement effort in trade deals such as CAFTA (Central American Free Trade Agreement), while retailers argue tougher tariff enforcement for apparel imports would penalise legitimate importers.

Can Aeropostale work its magic on kids?

Thu, 18 Jun 2009 19:17:00 GMT

Teen clothing retailer Aeropostale is one of the few bright lights in the retail sector just now, with its namesake chain seeing first quarter profit soar 81.1% to $31.7m and sales jump 21% to $408.0m.

And it now believes it has identified another retailing sweet spot selling trendy clothes at value prices to kids aged between 7 and 12.

The first P.S. from Aeropostale store opened in New York today and nine more are due this year.

The timing of the launch, in the midst of one of the worst recessions on record, might seem strange, but it plays along with the belief that knowing your customers - and giving them what they want - is key to getting through the economic slowdown. Successful new brands will supplement existing ones in the future, and of course there's plenty of retail space up for grabs now too.

The concept is not without its competitors; just think Children's Place, Abercrombie & Fitch's abercrombie, and J Crew's Crew Cuts.

But analysts continue to believe the teen and children's apparel category is more resilient than that of adults' clothing. Partly because kids outgrow their clothes and need to make more purchases as a result, but also because parents are less likely to cut back on their children's products than they are their own.

Rocking the boundaries

Wed, 17 Jun 2009 15:39:00 GMT

Judging by the pictures that appear regularly on the pages of the tabloid press, Rolling Stones musician Ronnie Wood is not, at first glance anyway, the most likely collaborator on a trendy fashion range.

So it's perhaps a relief to realise it's not his personal style that's the inspiration for a new line with up-market department store Liberty of London.

Instead, it's Wood's other pastime as an acclaimed artist that is leading to a collection of prints which will appear on a range of men's and women's ready-to-wear and accessories designed by the retailer's creative director Tamara Salman.

We'll have to wait until the autumn, though, to see if the range really rocks.

All change at J Jill, Filene's, Arcandor

Mon, 15 Jun 2009 16:33:00 GMT

US women's wear retailer The Talbots has finally found a buyer for its J Jill brand, with a US$75m deal agreed with an affiliate of private equity firm Golden Gate Capital last week. The sale price falls way short of the $517m paid by Talbots for the chain just three years ago, and will lead to the closure of 75 of its 204 stores.

But crucially, it now leaves Talbots free to focus on the turnaround of its core business without the distraction of a second drain on its finances.

That said, progress is likely to be slow. Just days after announcing the J Jill sale, Talbots unveiled plans to cut its workforce by a further 20% after swinging to a first quarter loss of US$18.8m, but said it was making "steady progress" on its turnaround. Sales were down 26.2% to $306.2m, although they were in line with expectations.

Meanwhile, confusion still surrounds the auction selling off the assets of bankrupt cut-price retailer Filene's Basement. Men's Wearhouse affiliate K&G Acquisition Corp had been named as the winning buyer for the retailer's assets, but the process was forced to re-start again after complaints from the losing bidders.

Men's Wearhouse had offered a total of US$67m for 17-20 Filene's Basement stores, assorted inventory, the company headquarters and a distribution centre, plus its trade name.

Details of the mix-up came as the retailer and tuxedo hire specialist beat forecasts with a first quarter profit of US$5.3m - although this was 46.6% below last year's figure as sales fell 5.5%.

Retail and travel group Arcandor AG, owner of Germany's largest department store chain, has also reached the end of the line - filing for bankruptcy protection after the German government rejected pleas for state aid to help repay loans of EUR710m (US$1bn).

The company says it will continue an ongoing restructuring programme while in administration, although industry observers believe the stage is now set for a break-up and sale of its assets, including department store chain Karstadt and mail-order business Primondo. Suppliers including Li & Fung have admitted they will be affected by the process.

In contrast, fast fashion retailer Inditex appears to be bearing up well in the downturn. Despite posting a 16% slump in first quarter net profit thanks to a slowdown in consumer spending in Europe, it reported resilient clothing sales in May and the first week of June. The operator of the Zara clothing chain said sales during May were up 9% on last year.

A rock and a hard place

Fri, 12 Jun 2009 18:42:00 GMT

US apparel retailers and importers must feel they are caught between a rock and a hard place with a bill now heading to the Senate that plans to set up reconstruction opportunity zones (ROZs) on the Pakistan-Afghanistan border.

The idea is that certain apparel and textile items made in these zones would be imported into the US duty-free, but there are so many hurdles to overcome that four trade groups fear the measure is little more than a "hollow gesture."

Some industry veterans feel the bill lays out so many obstacles to doing business that it's hard to see any benefits from it at all.

On the one hand the legislation doesn't yet include items like cotton trousers and shorts and cotton knit tops - which are already among Pakistan's main exports and which the US wants to buy.

On the other, a pay-for provision in the bill will increase the cost of doing business in other areas of Pakistan by charging processing fees on imported products that have not been made in the duty free zones.

There are also concerns its more stringent labour provisions - particularly those calling for repeat inspections - may prove unworkable.

But there's also one other fundamental problem that seems to have been overlooked.

The zones are planned in one of the most inaccessible and inhospitable areas on earth, and the idea that not only will factories actually get built here, but that US apparel importers and buyers will be willing to put their lives on the line to carry out factory inspections, is perhaps pushing the realms of reality.

End of the line for Arcandor?

Thu, 11 Jun 2009 17:29:00 GMT

The collapse into bankruptcy protection earlier this week of retail and travel group Arcandor AG, owner of Germany's largest department store chain, wasn't a surprise. The company, which operates department store chain Karstadt and mail-order business Primondo, had been trying - and failing - to restructure its business for the past four years, with little to show except heavy debts.

The retailer, which also owns travel company Thomas Cook, saw its shares fall by more than 80% over the past year as it slumped to a full-year loss of EUR746m (US$992.4m) and sales fell 3.4% at its Karstadt unit.

Without a plan to rescue its business when times were good, it stood little chance of being able to weather the recession. And it seems the German government had had enough too, with its decision to reject pleas for state aid to help repay loans being the final straw that broke the camel's back.

So what now? The bankruptcy does not affect every aspect of Arcandor's operations, with travel firm Thomas Cook Plc, Primondo's specialist mail order companies and home shopping channel HSE 24 untouched by the proceedings. But by its own admission the company has just two months, until the end of August, in which it can afford to pay salaries for Arcandor's 43,000 employees. And loans of EUR710m will shortly need to be repaid.

Under German insolvency law, a bankruptcy filing offers similar protection to the Chapter 11 rules in the US, which allow a company to continue to operate and reorganise while offering protection from its creditors.

Hong Kong-based supplier Li & Fung has admitted that it will be affected by the process, and is currently owed about US$5.4m in agency commission by Arcandor. But other suppliers including Esprit Holdings and sportswear company Adidas AG say they are "barely affected" by the insolvency - although Adidas has warned it will only deliver new orders if the goods are paid for in advance.

So the stage is now set for a break-up and sale of its assets, with rivals like Metro making no secret of their interest in merging its Galeria Kaufhof department stores with Karstadt, and German company Otto being touted as a good match for Primondo.

But whether such a sale can raise the vast sums needed to match the company's obligations to creditors remains to be seen. And if this doesn't seal its fate, are department stores really the model that today's investors really want to buy in to?

The Financial Times calculates that about 500 of Germany's 643 department stores have fallen - or are about to fall - into the hands of the receiver. And it notes that the format has failed to keep pace with the specialist retailers found in shopping centres and on the internet. Indeed, so tough was the competition that even discount giant Wal-Mart three years ago gave up its plans to sell everything under one roof in Germany.

Talbots finally finds J Jill buyer

Tue, 09 Jun 2009 16:43:00 GMT

The sale of Talbots' J Jill stores to private equity firm Golden Gate Capital, and Filene's Basement to a unit of Men's Wearhouse, in the space of just two days has raised hopes for the troubled US retail market.

After all, the fact several companies were vying to buy each of the retail chains suggests they still see potential for the loss-making formats and are confident they will be able to breathe new life into their investments. And while some store closures and job losses are an inevitable casualty of the deals, it is also worth noting that the new owners have promised to safeguard the vast majority of positions at the two store groups.

That said, there is also relief that Talbots has finally offloaded the white elephant it bought following a bidding war in 2006. The $75m deal announced yesterday falls way short of the $517m paid by Talbots just three years ago, and suggests the women's wear chain was prepared to sell its J Jill unit at almost any price.

But however much money it lost on the sale, it is now free to focus on trying to turn around its core Talbots chain without the distraction of a second drain on its finances.

The retailer has already suffered more than most from the slowdown in consumer spending as it tried to refocus on its 35-plus customers. It has closed its kids', men's, and UK shops, axed 370 jobs in February, reduced working hours, changed employee benefits, cut overheads and closed stores, and intends to halve capital expenditure this year.

But even so, progress has been slow. Today the retailer unveiled plans to cut its workforce by a further 20% after swinging to a first quarter loss of US$18.8m, but said it was making "steady progress" on its turnaround.

In contrast, over the last five years Golden Gate Capital has completed around 20 multi-channel retail acquisitions - including Express - totalling in excess of $3.5bn in annual revenues. It'll be interesting to see how it plans to build on the potential of the J Jill brand as an independent company.

Asian suppliers take the initiative

Mon, 08 Jun 2009 15:29:00 GMT

A group of Asian garment suppliers last week launched an innovative solution to volatile demand from retailers in Europe and the US.

Using surplus stock originally planned to make clothes for now-collapsed Principles, five manufacturers decided to start their own online store under the brand name Epiq.

Whilst the website was originally started up as an emergency measure two weeks ago, Epiq has since added more stock and wants to expand the brand into the UK market.

With increasing responsibilities being placed on suppliers, such as design, warehousing and traceability, it is little wonder Epiq's initiative has hit the ground running.

Apparel and footwear makers in Asia currently have no choice but to adapt in line with a turbulent Western retail environment. And according to analysis by Clothesource last week, many are managing to do this.

The sourcing consultancy notes that the six countries making up 80% of Asian clothing exports - China, Vietnam, India, Bangladesh, Indonesia and Sri Lanka - have achieved export gains for the year so far in spite of sloping retail sales.

Successful manufacturers in these countries have managed to align themselves with retailers who continue to buck the trend, such as the UK's New Look, which last week posted full-year profits up 10.2%.

New Look's affordable fashion model resonates well with a recession-hit UK, and Asian suppliers ready to meet its design and pay structure can reap the rewards too.

Supply chain partnerships are make or break under the current climate, for suppliers and retailers alike.

By Joe Ayling, news editor.

UK: Principles suppliers join forces in online initiative

ANALYSIS: Global apparel sourcing in uncertain times

UK: New Look thrives on affordable fashion sales

Demystifying the sustainability debate

Wed, 03 Jun 2009 17:02:00 GMT

Retailers, brands and manufacturers are repeatedly being told that to be viable in the long-term they must be as ethical, sustainable and environmentally-friendly as possible, since even cash-strapped shoppers still care about the provenance of their clothing. But what exactly does this mean?

There's certainly more to it than simply switching to organic cotton in some of your clothing lines. But surprisingly, given the buzz that surrounds the whole issue of sustainability, there is no clear definition of what it stands for - and even less information on how to achieve it.

So the University of Delaware should be applauded for trying to put the debate into context with its guide to "Creating a More Environmentally Sustainable Apparel Business: Policies for Apparel Brands and Retailers."

Recommendations from the University's Sustainable Apparel Initiative (UDSAI) include cutting excess manufacturing by balancing supply with demand, learning from your mistakes, and thinking about a garment's end-of-life when choosing materials, designing, and producing it.

Yes they might seem simplistic, but with the general confusion surrounding the use of phrases like "social responsibility" or "corporate citizenship," and with many firms still making unspecific and unsupported claims about a product's environmental impact, it's important to set out a structure that can be easily followed.

Sell-offs amid the shakeout

Mon, 01 Jun 2009 12:25:00 GMT

The shake-out at some of the fashion industry's best known names continued last week, with troubled firms resorting to sell-offs and bankruptcies as turmoil in financial markets stifles investment and consumer spending fails to pick up.

Leading the way, Hong Kong based apparel firm YGM Trading confirmed it has signed a letter of intent to buy British clothing brand Aquascutum, which it already makes and distributes in Greater China, Singapore and Malaysia.

The revelation follows the resignation of the 158-year-old label's chief executive Kim Winser, after her plans for a management buyout were rejected by the firm's Japanese owner Renown. Yukio Ueda has been parachuted in as the new managing director, taking charge of the brand while a takeover is negotiated.

Renown has been trying to offload Aquascutum since last October after struggling to reverse ongoing losses and revamp its image.

Meanwhile, a Paris commercial court is mulling whether Christian Lacroix is to go into administration or be liquidated after the luxury fashion house last week declared itself insolvent. A slowdown in its core women's wear sales and a failure to secure new financial backing are blamed - although takeover talks with an unidentified investor are also said to be underway.

The Spanish textiles unit of Dogi International Fabrics has applied for administration after failing to obtain financing, but will continue to operate while its management works on a viability plan to help the firm get through the current economic downturn. The company said it is looking to sell off some of its assets, but that its subsidiaries and joint venture partners are unaffected by the moves.

German women's wear group Escada has agreed to sell three of its four Primera Group fashion labels to Munich-based holding company Mutares AG - which will take a 90% stake in the Laur�l, Apriori, and Cavita lines. Talks on the sale of its BiBA brand are also underway. Offloading Primera is part of an ongoing restructuring at Escada.

However, plans for the sale of bankrupt Chicago-based suit maker Hartmarx seem to be stumbling. Last week it agreed to sell its assets to Emerisque Brands and SKNL North America - a unit of Indian apparel maker S Kumars Nationwide Ltd - in a deal worth US$119m. But Hartmarx's chief lender Wells Fargo now says it opposes the deal because it does not maximise the value of Hartmarx's assets or guarantee continued operation of the company's current business.

Footy fans warned about shoddy shirts

Thu, 28 May 2009 14:17:00 GMT

As many as one in five football fans at last night's Champions League Final in Rome could have been wearing fake football shirts, estimates a textiles testing firm.

And according to Manchester-based Shirley Technologies such fakes pose a risk to the thousands of fans sporting them.

"Within days of Manchester United confirming their place in the Champions League final, unofficial merchandise - including shirts - is plain to see around the UK, and, given the status of Manchester United, around the world," said Asif Shah of Shirley.

"There is no way the unofficial shirts could be fully tested for harmful chemicals, or audited to ensure ethical manufacture, in the period between the semi-finals and those shirts first appearing. A fake sports shirt, no matter how convincing it looks, can contain a huge range of hidden dangers for the buyer and wearer - and be a death sentence for the maker."

Shah says a genuine shirt will be tested for its pH value, for harmful dyes, extractable heavy metals and organo tin compounds, which if undetected could be a skin irritant or spark an allergic reaction.

While the issue is unlikely to enter pre-match conversations in the local pub, it certainly gives further reason for clampdown on counterfeit goods.

By Joe Ayling, news editor.