Three cases from the USA, Asia and Argentina. Each of them showcases how, sadly, Coronavirus has weakened the leather industry. In other words: some companies think of closing for good. Others try to avoid it. And others hope in the recovery of financial markets.
Tasman Leather, in the USA
As reported by wabi.tv, US-based group Tasman Leather Group announced it is shutting down the historic plant in Hartland, Maine, where over 100 workers were employed. The goup had quired the site 9 years ago, but the plant had been active for about 70. According to what reported by the US portal, Tasman Leather Group communicated the closing due to the “devastating impact” that the Covid-19 virus has had on demand. The plant will be officially closed before summer.
Grimoldi, in Argentina
Grimoldi, historic footwear manufacturer located in Argentina, is also struggling. The company, founded in 1895, announced it will be unable to repay negotiable loans worth about 105,000 USD, within the established deadline. The direct consequence of this is the defaulting of the business, a situation that company is trying to avoid at all costs. According to local press, which broke this news, Grimoldi has stated it is “unable to comply with the obligations due to the macroeconomic situation of Argentina”. But also due to the “impact of the quarantine imposed to combat the Covid-19 contagion”.
Guandong Tannery, in Asia
Asian Guandong Tannery’s stock value decreased by 45% in comparison to last year, according to the index on the Hong Kong stock exchange. The volume of hides tanned by the company during the first quarter of the year decreased by 59.9%, in comparison. In volume: -82%. As a consequence, revenue fell by 76.9%. these results are tied to the forced 2-week shutdown imposed in February for the pandemic.
Read also:
- Argentina’s leather under pressure amid protests and positive messages
- India, clients running away, as the lockdown kills the local leather industry
- UK, Fast Fashion in crisis: Bangladesh loses 2.75 billion
