Newsletter No 24 / 2 July 2021
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Lesotho textile sector needs new partnerships to recover: Report
Lesotho needs to enter into new partnerships to help its textile sector recover from the impact of COVID-19, according to a recent report. It said that the lack of customers is a major challenge for textile and apparel companies along with high rentals, closing of borders and rising prices of fabrics amid the pandemic.
The closing of borders impacted the industry as factories depend on international markets for sale as well as receive production inputs from South Africa, said a report by Private Sector Foundation of Lesotho (PSFL). This also caused prices of materials in the local market to rise.
Production units were also unable to source good-quality material for their products and were forced to use low-quality materials for production.
Companies lost customers due to not being able to deliver the products on time, the report said. The manufacturers also dealt with lack of funds as deposits were not paid. They also failed to receive institutional support.
The report has recommended establishing industry-wide structures and embracing new partnerships to reconstruct the textile industry. The recommendations include establishing Textile and Apparel Association (TAA) at national and district levels for dealing with issues related to the textile industry.
The TAA can ensure that all textile and apparel companies are licensed by One Stop Business Facilitation Centre (OBFC) to encourage investors to provide financial resources.
The report has also urged the government to make policies and introduce special programmes for the textile and apparel industry with the help of development partners like Aid for Trade. It should also make provisions for training, mentoring and providing technical assistance for the members of the TAA through Business Development Services.
Some of the other recommendations include encouraging partnerships between corporates and MSMEs; using the Third Industrial Development Decade in Africa (IDDA 3) to uplift the textile and apparel sector; developing sustainable textiles and boosting production capabilities; and introducing new financial schemes to help manufacturing units to invest in technology. F2F
South African textile workers to get average wage rise of 5.2% from Aug 1
The Southern African Clothing & Textile Workers’ Union (SACTWU) has settled its 2021 wage negotiations for the country’s textile sector to provide for a 4.77 per cent wage increase for metro areas, and 6.66 per cent for non-metro areas. The average increase for both areas is 5.2 per cent, which will be effective from August 1 this year.
SACTWU, affiliated with Congress of South African Trade Unions (COSATU), signed an agreement with the South African Blankets Manufacturing Employers’ Organisation (SABMEO) on June 9, 2021, the organisation said in a press release.
The negotiations were conducted on hybrid virtual platform, under the auspices of the National Textile Bargaining Council (NTBC).
The wage increase will be applicable for a 12-month period from August 1, 2021 to July 31, 2022. Fresh negotiations will be held in early 2022, to determine the new wages from August 1 next year.
“While we are mindful that future inflationary movements are currently volatile, SACTWU is pleased that it has managed to secure a wage increase for our members which at this stage is higher than inflation and under very difficult COVID-19 pandemic conditions,” SACTWU said in the release.
In addition, the parties have agreed to a provision wherein all employers in the sector need to assist with the COVID-19 vaccination campaign. F2F
The FIX Changes* the face of fashion with launch of local 100% sustainable range
Local fast fashion value outlet, The FIX has launched a 100% sustainable range consistent with the retailer’s #dowhatsright purpose. Locally designed and manufactured by TFG Prestige Caledon, each garment is made up of 40% recycled polyester chips and 60% fabric waste.
“Our Changes* range is a self-fulfilling prophecy. The FIX is known to push boundaries in fashion and with the causes they support. Like our customers, we knew that the next step needed to be bigger, bolder and immediate. Working with TFG Design and Manufacturing, together we designed and manufactured the range.” said TFG Group Director Stuart Baird.
The FIX Changes* range is another example of TFG’s Quick Response Manufacturing innovation. Using the best of class manufacturing technology to create shorter lead times is a strategic advantage for the Group. Lead times have been reduced from 150-180 days to an average of 52 days.
Shop The FIX *Changes range online and store starting at R99.99 https://www.thefix.co.za/plp/ladies/trending/sustainable-sheesh/
Rex True – provision of financial assistance
Notice is hereby given that, in terms of the provisions of section 45(5) of the Companies Act 71 of 2008 (“the Companies Act”), and pursuant to the special resolution passed at the annual general meeting of Rex Trueform held on 22 January 2021 authorising the board of directors of the Company (“the board”) to provide direct or indirect financial assistance to, inter alia, subsidiaries of the Company, the Company has provided financial assistance to subsidiaries on the following basis:
As announced on SENS on 6 October 2016, Queenspark (Pty) Ltd. (Registration Number: 2001/022975/07) (“Queenspark”) entered into a written loan agreement with, Queenspark (Pty) Ltd. (Registration Number: 2015/1333) (“Queenspark Namibia”), a wholly-owned subsidiary of the Company and a related person to the Company in the manner contemplated in the Companies Act, pursuant to which the Company agreed to make a loan facility in the amount of R 7 000 000.00 available to Queenspark Namibia (“the Loan Agreement”).
As at 28 June 2021, Queenspark constituted a substantial creditor of Queenspark Namibia in the amount of R 4 934 292.72 in terms of the Loan Agreement (“Loan Balance Outstanding”) and R 2 563 884.77 for Trade Accounts Payable (“Trade Balance Outstanding”).
Queenspark has now agreed to provide financial assistance to Queenspark Namibia by way of forgiving both the Loan Balance Outstanding as well as the Trade Balance Outstanding (collectively, “Balance Outstanding”) pursuant to which Queenspark will with effect from 30 June 2021 waive any claim it may have against Queenspark Namibia with respect to the Balance Outstanding.
In accordance with section 45 of the Companies Act, the board of the Company was satisfied that immediately after providing such financial assistance, Queenspark has met the provisions of the solvency and liquidity test as provided for in section 4 of the Companies Act. Accordingly, the board of the Company adopted a resolution on 30 June 2021 in terms of section 45(2) of the Companies Act, authorising Queenspark to provide financial assistance as contemplated in section 45 of the Companies Act to Queenspark Namibia.
Rex True – preference dividend declaration
Notice is hereby given that a cash dividend (“preference share dividend”) on the 6% cumulative preference shares (“preference shares”) for the six months ending 30 June 2021 at a rate of 6% per annum (6.00 cents per preference share) has been declared and will be paid on Monday, 12 July 2021 to all holders of preference shares (“preference shareholders”) recorded in the register of Rex Trueform at close of business on Friday, 9 July 2020.
The salient dates of the preference share dividend are as follows:
*Last date to trade cum preference share dividend: Tuesday, 6 July 2021
*Preference shares trade ex preference share dividend: Wednesday, 7 July 2021
*Record date: Friday, 9 July 2021
*Payment date: Monday, 12 July 2021
Preference share certificates may not be dematerialised or rematerialised between Wednesday, 7 July 2021 and Friday, 9 July 2021, both dates inclusive.
Mr Price – Notice of AGM
Shareholders are advised that the Company’s 2021 Integrated Report, which incorporates the audited annual financial statements for the 53 weeks ended 3 April 2021, has been distributed to shareholders and published on the Group’s website (www.mrpricegroup.com/mr-price-group-investor-relations.aspx), on 30 June 2021.
The audited annual financial statements contain no modifications to the reviewed preliminary Group results which were published on the Stock Exchange News Service (“SENS”) on Thursday, 27 May 2021.
There have been no changes to the review conclusion auditors report which was referenced in the reviewed results and made available to shareholders at the Company’s registered office on the same date as the release of the reviewed results on SENS.
Notice of annual general meeting
Notice is hereby given that the 88th Annual General Meeting (“AGM”) of shareholders of the Company will be held at Upper Level, North Concourse, 65 Masabalala Yengwa Avenue, Durban on Wednesday, 25 August 2021 at 14h30 to transact the business as stated in the notice of AGM forming part of the 2021 IR. Considering COVID-19 and consequent lockdown restrictions, shareholders will be notified of any changes to the meeting arrangements.
In compliance with the provisions of the Companies Act 71 of 2008 and the Company’s memorandum of incorporation, shareholders may participate in (but not vote at) the meeting by way of electronic participation. To obtain electronic participation details, shareholders or their proxies must contact the Company’s transfer secretaries, Computershare Investor Services (Pty) Ltd. (“Computershare”) on email@example.com by no later than 14h30 on Monday, 23 August 2021. Shareholders will be liable for their own network charges in relation to electronic participation at the AGM.
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