Wednesday, June 12, 2024

B&M Garments on the verge of collapse

B&M Garments (Pty), the Tonota-based textile manufacturers, is on the verge of collapse as they struggle to recover from high operational costs, low sales and shortage of skilled labour.

Reports quoted B&B Garments managing director, Krishna Chinniah confirming the development. Chinniah said the textile industry exports have been hit hard by skills shortages and a weaker Rand, adding that this has forced them to inform the Commissioner of Labour office to update them on the quandary they are facing.

“We decided to inform the Commissioner of Labour about the problems we are facing. We informed the Commissioner that if the situation does not improve we may relocate to Mauritius,” said the distraught director, adding that Mauritius has an abundance of skilled labour.

Earlier this year, the firm shed 300 jobs in a cost-saving move and added that they have not recovered from the crippling economic conditions which may result in the closure of the company. Although B&M Garments’ major market is in South Africa, their problems are compounded by the fact that the South African Rand has been depreciating.

Chinniah said the company employees have been informed and updated on the plight of the firm. He also said retrenchment plans will continue if operational efficiencies are not achieved, adding that “In May we have a list of 20 more people whom we may retrench.”

The company sales have drastically reduced by almost 50% and from January to April, 2015, sales have been depreciating. The firm also confirmed that they are likely not to have orders from May to June.

B&M Garments (Pty) Ltd is a vertically integrated t-shirt manufacturing company with its own knitting and dyeing facilities. It is a privately foreign owned company that began its operations in 2000 and is situated in Shashe, near Francistown.


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