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BusinessLive reports that Brimstone, the black-owned and managed investment holding company, says its clothing manufacturing arm House of Monatic may retrench staff due to SA retailers squeezing local apparel producers on price.
Cape Town-based House of Monatic, which owns brands such as Carducci and Viyella, employs more than 350 people, but says it is facing possible cutbacks due to retailers expecting to match prices of cheaper Asian imports. Abubaker Frizlar, head of brands, design and development at House of Monatic, explained: “While there is an apparent willingness to use more local suppliers, the problem is that retailers are still looking to retain their margins. Retailers have an expectation for local manufacturers to deliver cut-price finished garments in line with what they would have spent on imports, sometimes priced at numbers recorded two years ago. This is untenable and unsustainable.” According to House of Monatic, retailers are pushing domestic manufacturers to cut prices even while resisting any reduction in their own profit margins. “The knock-on effect of the lack of will for all parties to meet in the middle is the high likelihood of increased unemployment as manufacturers let their staff go,” said Frizlar.
- Read the full original of the report in the above regard by Garth Theunissen at BusinessLive
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