FW
American Apparel has got a $300-million buyout offer from an investor group interestingly backed by the company’s former chief executive Dov Charney, who was ousted after a series of sexual harassment cases against him.
Private equity firms Hagan Capital Group and Silver Creek Capital Partners in a joint statement said that their offer of $300 million for the troubled retailer included $90 million of new equity and a $40 million term loan. The enterprise value of the deal is above the valuation of $180 million-$270 million. If the deal gets through, the company would be able to address the bankruptcy pressure and will also see Charney rejoining as the CEO of American Apparel.
The company operated 218 stores in 19 countries and became popular for its advertisement campaigns depicting over-the-top sexual imagery. Meanwhile, a hearing on the bankruptcy application will be conducted on January 20, 2016 to confirm the bankruptcy plan. Under the bankruptcy plan, American Apparel said it has secured $40 million in additional capital, in addition to the $40 million of new capital previously committed by lenders.
www.americanapparel.net
“Kingdom right now has total installed spindles over 100,000, with an annual capacity more than 18,000 tons of wet spun linen yarn, one of the largest linen yarn spinning abilities in the world. Now Kingdom shares 15 per cent in China's domestic linen yarn market and 10 per cent of the global market.Kingdom shares around 50 per cent of the whole export of linen yarn from China to the high-end markets such as Italy, Japan, Korea and other countries in EU.” exclaims Ren."
Kingdom, a leading China-based linen fibre producer, organised a ‘Mumbai Day’ on January 7, 2016 to meet existing clients and establish a network with new clients. Ren Weiming, Chairman of the Board, Kingdom Holdings China inaugurated the session that also focused on the origin and growth of luxury fibre linen and its growth, and its emergence in the Indian market.
China’s Kingdom in India
The event organised in association with Sundaram TexVentures, saw around more than 60 select industry professionals interact and network over common interest. Stalwarts including Ramesh Poddar from Siyarams, Virendra Arora and R Mishra- D Décor, Rajendra Agrawal- Donear, Yogesh Mittal- Kottex, Surat, Vijay Puniyani and Gulshan Kumar- Vardhaman, Sunil Patil and Vishal Shah-Arvind Mills, Ashok Ramdham from Mafatlal, Balachander were some of the attendees. The audience included around 45 customers from various parts of India Mumbai, Delhi, Tamil Nadu, Surat, Ahmedabad and Ichhalkaranji attended the program.
Mumbai Day was also graced by Jean Claude Lambert, President of Teillage De Lin Du Vert Galant, which is an excellent flax enterprise in France, who spoke about ‘The Growth of Flax in Europe’.
Talking about Kingdom’s expertise in linen, Ren said the company has more than 30 years of history, and started its linen business 16 years ago. “Kingdom people are dedicated in linen business with our enduring passion for pure linen. We constantly invest in advanced linen spinning technology to provide best quality of linen yarn in the world.”
Renowned linen manufacturer-exporter
Kingdom Holdings that started as a silk spinning and weaving company for first 17 years, in 1999 moved to spinning linen, sighting growing opportunities in the segment. Kingdom procures all of their scutched flax fibre from best of the Scutching mills in France.
Kingdom has three linen spinning mills, located in the two most developed textile centres in China: Zhejiang and Jiangsu provinces and is in the process of developing the fourth one in Ethiopia. “Kingdom right now has total installed spindles over 100,000, with an annual capacity more than 18,000 tons of wet spun linen yarn, one of the largest linen yarn spinning abilities in the world. Now Kingdom shares 15 per cent in China's domestic linen yarn market and 10 per cent of the global market,” exclaims Ren.
Kingdom shares around 50 per cent of the whole export of linen yarn from China to the high-end markets such as Italy, Japan, Korea and other countries in EU. In addition, Kingdom has also established strategic cooperation relations with Siemens (China) Co in the energy saving, environmental protection, fine management, information system, and automation.
Emergence of linen in the India market
Linen is one of the most popular textile products in the international market. While Europe continues to be the traditional consumption market for linen, demand in other countries like China, India and Japan is growing fast, which has brought a new momentum and opportunity for the linen industry. “India has become one of the fastest growing markets of linen consumption in the world. Kingdom is one of the most active linen yarn suppliers in India. We want to provide better quality linen yarn, to meet the continuous upgrading demand in the Indian market. With our third spinning mill put into running, we will have sufficient capacity to meet the quantitative demand in India. India will be one of Kingdom’s major markets in the future,” explains Ren.
“My association with Kingdom Holdings started in the year of 2009, when I first met Marc from Kingdom in Shanghai. At that time the consumption of linen yarn in India was at a very nascent stage but I had a definite idea that it was going to grow very fast. I explained the future potential of linen yarns in India market and that’s was how this business association started,” avers Manish Mehta, Managing Director, Sundaram TexVentures.
Kingdom associated with Manish Mehta as their exclusive agents in the year 2009 for promotion and selling of their wet spun linen yarn in India and later other neighbouring countries like Pakistan, Bangladesh, Sri Lanka were added to this exclusive arrangement. “We started with a mere 300MT sales in the year 2009¬-2010. And over the past six years with the continued support of our esteemed customers in India, volumes have grown gradually and consistently. In this calendar year 2015, we have achieved a sales of 2,400MT of Kingdom’s linen yarns in India alone which is around 20 per cent of the total 12,000 MT yarn shipped from China to India during this period,” informed Mehta.
www.kingdom-china.com
Bangladesh wants India to lift countervailing duty (CVD) on goods coming from Bangladesh. CVDs are tariffs levied on imported goods to offset subsidies made to producers of goods in the exporting country. The duties are meant to level the playing field between domestic and foreign manufacturers of the same product. Bangladeshi businesses have been facing challenges in exporting to India due to the CVD.
Currently the highest rate of CVD on Bangladesh’s products destined to India is 20 per cent. Garments, Bangladesh’s main export item, have been facing 12.5 per cent CVD since April 2013. The duty reduced the competitiveness of Bangladesh’s products in India and caused exports to fall. This is after India allowed duty-free entry to all products from Bangladesh except 25 alcoholic and beverage items in November 2012.
With CVD, Bangladesh’s exports to India declined 19 per cent year-on-year in fiscal 2013-14, mainly due to a slowdown in shipment of garment items. Bangladesh’s exports to India have not increased despite measures to reduce the huge trade gap between the two neighbors. Major impediments are a lack of product diversification in Bangladesh, non-tariff barriers, and inadequate banking facility along the border areas of the two countries.
Bangladesh mainly imports basic commodities from India like rice, cotton, onion, fabric, chemical products and dye, limestone, cattle, electricity, machinery and pulses.
Cotton futures extended their rebound after the US raised above 9m bales its forecast for the top in world stocks this season, as it downgraded Chinese and Pakistani harvests to multi-year lows. Cotton futures for March closed 0.1per cent higher at 61.41 cents a pound in late deals in New York, achieving their first back-to-back winning sessions of 2016.
The increase followed the downgrade by the US Department of Agriculture, in its much-watched monthly Wasde report on world crop supply and demand, of 1.5m bales to 102.9m bales its forecast for world stocks at the close of 2015-16. The cut to stocks expectations reflected weakened estimates for output both in China, now seen tumbling by 6.20m bales to a 15-year low of 23.8m bales after a subsidy rejig, and in Pakistan.
The Pakistan crop was downgraded by 800,000 bales to a 17-year low of 7.20m bales, with falling arrivals of cotton at gins indicating "more extensive whitefly damage than previously expected", the USDA said, adding, "Yields are reported at record low levels due to widespread whitefly and cotton leaf curl virus infestations with continued reports of significantly poor productivity across the major cotton growing provinces Punjab and Sindh.”
The USDA also trimmed its estimate for domestic output last year by 88,000 bales to 12.8m bales, thanks to a small yield downgrade, but reduced its estimate for domestic consumption too, citing data on spinning activity up to November. US inventories at the close of 2015-16 were pegged at 3.10m bales, an upgrade of 100,000 bales, but a figure in line with market expectations.
www.usda.gov
With a strong increase in the number of exhibitors and all indications suggesting that the new furnishing season will be a good one, Heimtextil starts today in Frankfurt. The globally-leading trade fair for home and contract textiles will present the world’s largest range of textile products, trends and new products until January 15, 2016. Top players in the international industry will present their wares in the newly extended exhibition space comprising 20 different hall levels.
Among the 2,866 exhibitors are an increased number of European companies. Some firms that are returning after a year or several years’ break or coming to Heimtextil for the first time are also fuelling the growth in the number of exhibitors. ‘The high demand consolidates our position as the most important meeting place for the industry and proves that our positioning of Heimtextil is the right one’, says Detlef Braun, CEO of Messe Frankfurt. He also suggests that this reflects the current positive mood in the industry: ‘The increase in European exhibitors comprises mainly exhibitors from Italy, the Netherlands and Belgium, as well as Turkey. The number of exhibitors from Brazil and the USA has also grown.
It is not just the number of home textile exhibitors that has grown in 2016, but also the exhibition space. This is due in part to the expanded range of décor and upholstery materials on offer. The product segments “window” and “upholstery” have been expanded at Heimtextil 2016 on account of the huge demand. The brand companies returning to Heimtextil in 2016 include Enzo Degli, Luilor, TEXAO, Marzotto Lab, Ratti Spa and Pozzi Arturo from Italy, as well as Libeco-Lagae, Verbatex and Annabel Textiles from Belgium and Penelope from Turkey.
Another highlight of Heimtextil is the “digital print” area. Digital printing is one of the most important growth segments in the industry. This is also reflected in the newly expanded exhibition space at Heimtextil 2016. Global top companies such as Epson, Hewlett Packard and Kornit will present their digital printing innovations on a surface area of over 1000 square metres. The event has also strengthened its offer in the segment of mattresses, bedding and bed systems. Renowned new exhibitors and returning companies present new products related to sleeping. The product “bed” incorporates an expanded offer comprising the segments bed linen, bedding, covers, decorative pillows and mattresses.
In order to continue strengthening the “green” textile market and act as a point of orientation and trailblazer, Heimtextil offers sustainable companies a forum, puts resource-saving products in the spotlight and invites visitors to take part in an accompanying event programme. In the “Green Village”, the expert centre for sustainability, visitors have the opportunity to talk to certifiers and quality seal awarders and get professional advice. The sustainability expert Max Gilgenmann will take interested trade fair guests on a “Green Tour” around Heimtextil and to selected exhibitors, thereby giving them an insight into the current developments in the green segment.
In line with key theme “Well-Being 4.0”, visitors to the Heimtextil “Theme Park” will experience the latest developments in the world of textile design. Every year, the Trendtable panel made up of international players in the industry evaluates the most important general trends and supplies furnishers, designers, product developers and creative teams with valuable orientation as well as reliable trend statements. These are showcased in the “Theme Park”.
www.messefrankfurt.com
Optitex, a provider of integrated 2-D CAD and 3-D digital product solutions for the textile industry, has joined the IEEE Standards Association Initiative to collaborate, research and build technology standards for 3D body processing.
As consumers seek more personalised shopping experiences, brands are seeking to incorporate 3-D scanning, modeling and visualisation into their businesses to further enhance their customer’s experience. This includes creating customised, tailor fitted garments, but also better products with improved 3-D capabilities.
Optitex, as an innovative thought leader in the future of 3-D and fashion, has joined the initiative to help create standards to implement these technologies into the fashion industry. Such standards will include privacy, communication, quality specifications, and sharing protocols.
According to Optitex, in a fast-fashion market, it’s all about getting the best products out for the consumer needs, as quickly as possible.
www.optitex.com
For its next edition to be held at the Javits Convention Center in New York City, Texworld USA has announced a new seminar series line-up for Winter 2016. Once again developed and organised by Lenzing Innovation and featuring 11 complimentary educational sessions led by over 25 industry experts, the series promises to be the most comprehensive educational series.
Kicking off on Sunday, January 24, 2016 and continuing with daily scheduled sessions through January 26, 2016, the Texworld USA seminar series will take a comprehensive look at several areas of importance to the textile, apparel and sourcing industries. Key topics include: social media strategies and tips, sustainability and design, fibre innovation, the future of trade and TPP, Spring 2017 colour trends, and more.
“As always, Lenzing Innovation has done an incredible job of curating a top-notch line-up of panellists and topics for the Texworld USA seminar series. With each edition, we are striving to offer attendees a valuable educational experience in addition to a space to do business and connect with resources,” said Dennis Smith, President, Messe Frankfurt North America.
January 2016 seminar series highlights include: “Contact” - Texworld Trend Forecasting: SS/2017, ‘Driving Social Media to Market Your Line’, ‘The Latest on Standards and Sustainability’, ‘Innovation in Today’s Fibre Landscape’ and ‘Sourcing and Trade for Today and Tomorrow’.
www.texworld.messefrankfurt.com
If the China’s currency Yuan continues to witness a downfall then industry experts are of the opinion that since China and India share common export markets such as the US and EU, Indian exports may be hit. Till December 2015, India’s apparel exports have witnessed a growth rate of 7-8 per cent against the anticipated 13-15 per cent.
Much of the fall in exports growth rate is being attributed to decline in Indian apparel exports to markets like China, Europe and the US due to overall economic slowdown. Now further downfall of Chinese yuan is expected to put a burden on Indian exports since the former would be able to offer products at a lower cost. Of the total $40 billion worth textiles and clothing (T&C) exports from India, apparel exports are worth $16 billion, while yarn, fabric and made-ups put together amount to $21 billion.
Over the last decade, India’s share in global apparel exports has remained modest at 3 to 4 per cent, according to ICRA report, despite being one of the world’s largest cotton producer and manufacturer of man-made fibres with world’s second largest spinning and weaving capacity.
www.icra.in
From January 16 to 18, 2016, 963 exhibitors will be presenting the retail trade with the latest trends and lifestyle products for the coming season. In its 2015 study 'Stadt, Land, Handel 2020' (Town, Country and the Retail Trade in 2020), The Institute for Trade Research(Institut für Handelsforschung - IFH) in Cologne came to the conclusion that almost one in ten high street retail shops will be threatened with closure by 2020. This affects some 45,000 retailers in Germany. The German Retail Federation (Handelsverband Deutschland – HDE) has predicted that small and medium-sized retailers will come under increasing pressure, as a result of the online boom.
The small increase in exhibitor numbers at the major consumer-goods fair for the Northern German retail trade, Nordstil, also indicates the special importance of consumer-goods fairs that are held in the early part of the year. “Whilst trade fairs cannot prevent the challenges that beset the retail trade, they can, however, help retailers to strengthen their position with respect to online retailing and help them to understand their customers' demands and habits. The probability of being one of the shops that will close by 2020 is definitely less for retailers who regularly attend trade fairs,” says Philipp Ferger, Director, Regional Consumer Goods Fairs, Messe Frankfurt.
Nordstil, which is held in January, offers ideal conditions in which to place orders at regional level for the spring and summer trade and to put together selections of goods to cover the entire year. With its broad range of products, it is, for buyers from Northern Germany and Denmark, an ideal platform for ordering goods. Altogether, 153 of the 963 exhibitors are from outside Germany. They come predominantly from neighbouring countries such as Denmark, the Netherlands and Sweden. The product groups include: Furnishing & Decoration, Style & Design, Gifts & Stationery, Kitchen & Gourmet, Garden & Seasonal, Relaxation & Well-Being, Jewellery & Fashion.
www.messefrankfurt.com
The Indian Institute of Corporate Affairs (IICA) is organising a two-day programme on “Supply Chain Management for Global Competitiveness” on February 8 and 9, 2016 at IICA, Manesar Campus.
SMEs and corporate houses from manufacturing as well as service sector like logistics, shipping lines, CHAs (importers, exporters, their clearing and forwarding agents), organised transport companies, directors and managers of supply chain management can benefit by attending this workshop. Members interested in participating in the programme can contact the IICA for details.
IICA is an institution established by the Ministry of Corporate Affairs, Government of India to provide holistic treatment of all issues that impact corporate functioning. The key to success for “Make in India” plan is to develop logistics and supply chain that support growth of global economy in general and nation in specific. There is a huge potential to make the country a global partner for manufacturing and services industries. The supply chain management and logistics are integral part of this development for the seamless network. The primary objective of this workshop is to present and discuss key challenges and management approaches for successful supply chain in global environment.
www.iica.in
