Blog: Buffett snares Russell Corp
Leonie Barrie | 18 April 2006
The sale of Russell Corp to Berkshire Hathaway should certainly place the sportswear maker in a stronger financial position after suffering a series of recent trip-ups. Last year’s annual earnings slipped 28% to $34.4m, and the company is likely to post a loss in the first quarter of 2006 after embarking on a hefty restructuring and cost-cutting exercise in January that saw the loss of around 2,300 jobs, mainly in the US.
But its woes haven’t ended here. The catalogue of misfortune includes the loss of the boys' fleece programme at Wal-Mart, delays to the passage of CAFTA, and the loss of containers of fabric and cut parts coupled with higher shipping costs during Hurricane Katrina.
Russell Corp, which makes the Jerzees, Spalding and Russell Athletic sportswear brands, has been pinning its hopes on these structural changes helping improve its competitiveness, with fewer, larger facilities able to move quickly and achieve lower costs. But now it seems the knight in shining armour has come in the form of billionaire Warren Buffett. The acquisition will also expand Berkshire Hathaway’s apparel holdings, which includes the Fruit of the Loom, Garan and Fechheimer brands.
Over the past month, Donald Trump and his team failed to offer any clear plan to ensure Americans would "Buy American, Hire American" - while the British government's attempts to clarify the specifics...
The Bangladesh government was forced to respond late last week to pressure over its crackdown on labour activists after a number of global brands and retailers, including H&M and Inditex announced pla...
Fresh from their disappointment at seeing the Trans-Pacific Partnership (TPP) free trade deal abandoned last month with an executive order by President Donald Trump, the US apparel and footwear sector...
With the ultimate aim of ensuring all the cotton in its products is sourced sustainably, value clothing retailer Primark is adamant that having a business model focused on offering the lowest prices o...
- Digitalisation and data to disrupt supply chains
- EU eyes mandatory due diligence for apparel supply
- Unlocks for the future fashion sourcing landscape
- What TTIP might mean for US, EU textiles & apparel
- Geo-political uncertainty and how to survive it
- Li & Fung forms supply chain partnership with PVH
- US Q4 in brief – Finish Line, Oxford Industries
- Levi Strauss and ILO probe Cambodia factory death
- Big data to help US firms improve clothing fit
- Next books first FY profit fall in eight years
- Central and East Europe Report Package
- Central America strategic sourcing review - a focus on Guatemala, El Salvador and Honduras
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- REPORT BUNDLE: Africa-Med, Southeast Asia and Central America strategic sourcing pack
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing