WoW – in another major blow to the already ailing textile industy in South Africa one of the major mills owned by the Seardel Group closes it’s Divisions.

The reknown Frame Group has been in trouble of a very long time now – it’s the accepted outlook that ever since Pilip Frame passed away (the founder of Frame), many years ago – the company has been on the dive.

SACTU (South African Clothing and Textile Workers Union) were really upset, as you can imagine, when they hear the announcement.

A lot of people are going to be losing their jobs – but faced with the way that the industry has been pile diving for the last decade, coupled with the recession – I am not in the least surprised. Long has the swan song of the textile industry been heard.

Seardel claims that the final decision has in actual fact not been passed, but the fact is that this represents a resounding blow to the industry with 1400 jobs on the line.

This is not the first major blow to the industry, what with the close of PUMA knitwear last year (not the sports brand, but a well known supplier of knits).

The fact is that no matter what the union’s case is, Seardel have to heed the bottom line – if the division is unprofitable, they have to make the right decision that will in turn save countless more jobs. The closure of the this division could be the saving grace of many others or the company itself.

Face it people – we are in a RECESSION ECONOMY – here in South Africa we are at least 6 months behind the International trends, and this is a mere taste of things to come.

Buckle down bronco – we are in for a rough ride.

The markets have been bullish for a very long time and a major correction has been due – the longer the market was bullish, the bigger the correction. It’s a bitter pill, but swallow it now and keep your eye on the ball. This is a time for companies to focus on building stronger better systems and logistics – to focus on strengthening their core foundations so when the recession lifts – and I do believe it will within 2 or so years – they have a very strong foundation to grow rapidly from.

The real concern right now is the snowball effect that might ensue – the closure of Frame could mean that many small CMT’s (Cut Make and Trim) or clothing design firms that buy smaller lots of material could be left scrambling to try find fabric which may ensue in more manufacture moving overseas.

Quite a blow indeed – 33 years ago by father and mother moved to South Africa from Chaifa, Israel to Durban – My father had met Philip Frame and Philip made him an offer he couldn’t refuse.

My father eventually became the Director of Mechanical Engineering for the whole Frame Group, and when Philip died – he could see the beginning of the end right back then. It’s been a weird experience for me – I never thought I would be in the industry and remember the factories as a child, where I used to hang out on Saturdays and holidays with my father.

Well – it seems that we are set for interesting times – and hopefully it does not become a Chinese curse.

Meanwhile – Springleap continue to support the South African textile industry.

Proudly SA all the way.