Blog: Eleksen on the block
Leonie Barrie | 16 October 2007
Executives at smart fabrics and textile touchpad maker Eleksen Group Plc have been warning for several months that funding levels were running critically low. But even so, the revelation that administrators are now trying to sell the business has come as something of a shock.
Eleksen is one of the most commercially advanced UK-based companies in the smart textiles field – which is itself one of the most exciting markets to emerge in recent years. The company specialises in touch-sensitive textiles to control equipment for electronic entertainment, particularly iPods, and has raised its profile by teaming up with companies from M&S to Ermenegildo Zegna to take its vision to the mainstream apparel market.
But such innovations don’t come cheap. Massive investment is needed to expand production capacities, develop new technologies and broaden the company’s customer base in the US and Far East.
The financials speak for themselves. In 2006, which was Eleksen’s first year as a public company, sales soared by 167% to GBP3.5m. But the warning signs were already there, with the costs of achieving its listing, coupled with heavy investments in personnel, widening full-year losses to GBP4.22m from GBP2.73m.
And last month the firm’s interim results showed a wider loss of GBP3.21m (US$6.6m), as revenues tumbled 68% to GBP581,000 from GBP1.8m.
The Administrators are now inviting offers for the business and its assets, but warn “the existing business requires substantial working capital to further develop its brands and broaden its market.”
Continuing our look at what lies ahead for the apparel industry and its supply chain in 2017, the panel of industry experts consulted by just-style last week tackled likely shifts in the sourcing land...
This week our focus turns to first thoughts from a panel of industry experts consulted by just-style on the challenges and opportunities likely to face the apparel supply chain in 2017, with prospects...
Welcome back after the holiday break, and from the team here at just-style I’d like to wish all our readers a happy and prosperous New Year....
Apparel sourcing is a complex process built on a mix of location, logistics, lead-time, price, compliance, risk and reliability. And it's in a constant state of flux as retailers, brands and manufactu...
- Trump and the apparel industry – Infographic
- How US border adjustment tax could affect apparel
- British Brexit plans prioritise tariff-free trade
- Apparel factory auditing is in the firing line
- $1.7bn package to boost Pakistan clothing exports
- Cambodia clothing exports at risk from Brexit
- Apparel brands urge Bangladesh PM to address wages
- New project to digitalise European fashion chains
- Brands need to tackle Turkey factory refugee abuse
- JC Penney to roll out hundreds of Nike "shops"
- Outdoor performance apparel 2016: A broader perspective
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Anti-odour clothing: fresh fashion for an active lifestyle
- Global market review of lingerie – forecasts to 2022
- Global apparel markets: product developments and innovations, October 2016