» Long-term growth plan is required for leather goods industry
An officer from leather industry said that the Indian leather goods manufacturers are willing to sit with the government to chart out a long term plan of action to take the industry ahead.
Chairman of Council of Leather Exports, Mr. Habib Hussain said, "Virtually, the Indian leather industry is absent in the women's fashion accessories and footwear segment. We are present in the premium men's brand segment and not in the mass market products. We can also grow in these fields
Buyers from abroad are looking for an alternative source to China. On the eve of 24th India International Leather Fair 2009, Hussain told, "With concrete strategy and necessary infrastructure, we can turn this into an opportunity." He further said that the total leather goods exports this fiscal will be around last year's figure of $3.6 billion.
The forth day leather fair will see 392 companies including 122 from abroad displaying their products. The fair was to be inaugurated by Minister of State for Industries, Mr. Ashwani Kumar at the Chennai Trade Center.
On account of the economic slowdown in Europe and the US and deteriorating India-Pakistan relations, the total number of participants has shown a marginal reduction this year, as compared to last year.
The India Trade Promotion Organization (ITPO) has organized this annual event.
- Chennai, Jan 30, 2009 (Indo Asian News Service)
» Land of Leather is latest victim of credit crisis
Land of Leather, the 109-store furniture specialist, yesterday became the latest retailer to fall victim to the retail crisis after a dire start to the new year sales, as data revealed that the industry endured its worst December since the early 1990s.
The retailer appointed Deloitte as administrator yesterday, a couple of hours after its shares were suspended at 2.95p, putting more than 1,000 jobs at risk. Lee Manning, the joint administrator and partner at Deloitte, said that it was talking to several interested parties, including trade buyers and private equity firms, about acquiring the retailer as a going concern, but said it was likely that a number of stores would have to close. It is understood that nearly a third of Land of Leather's stores are loss-making.
Land of Leather is the latest furniture retailer to collapse over the past 12 months. Last year, Ilva, New Heights and MFI fell into administration, as did the home furnishings chain Rosebys.
Today, the British Retail Consortium will reveal that underlying retail sales tumbled by 3.3 per cent in December - the worst performance since its survey began 14 years ago. In addition to a dire start to its Boxing Day sales, Land of Leather's woes had been compounded by a lack of credit insurance and bailiffs visiting up to 12 of its stores. Its sales fell 47 per cent over the three months to 2 November last year. Mr Manning said that Land of Leather had struck agreements with 75 per cent of its landlords to pay reduced rents, such as 50 per cent over the coming months, but some landlords had still sent bailiff to stores.
Mr Manning said the withdrawal of credit insurance had "tightened the noose around the company" in terms of its ability to get product into stores. Land of Leather stopped taking cash payments from customers on 30 Dec-ember. Deloitte said that customers who have paid a deposit by credit card or Visa debit card, or indeed have paid a deposit by any means since 26 Dec-ember, will be fully protected. But some customers who paid by cash or by a non-Visa debit card before Boxing Day may have to accept a discount on other stock if the original order cannot be fulfilled.
Separately, Sofa Workshop, the 31-store furniture retailer on the brink of administration, was understood to have stopped taking cash orders yesterday.
- Tuesday, 13 January 2009
