Monatic to rescue Rex Trueform
Charlotte Mathews
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Consumer Industries Editor
CAPE TOWN ù Clothing manufacturer House of Monatic Clothing, owned by Brimstone Investment Corporation, has stepped in to continue production at the Rex Trueform factory in Salt River in a move that could save between 200 and 500 jobs.
Rex Trueform said in March it was talking to the South African Clothing and Textile Workers Union about the closure of its tailoring factory in Salt River, which employs about 1000 people.
The groupÆs manufacturing division has lost about R60m in the past six years and the future of the Salt River factory, which was already suffering from a change in fashion away from formal tailored garments, looked bleak after a major export contract to the US was lost because the buyer said it would be sourcing from China in future.
House of Monatic said yesterday that it had agreed with Rex Trueform and the union to lease the Salt River factory with effect from January 1 next year, as well as use the Rex Trueform name and certain trademarks.
House of Monatic chairman Fred Robertson said the deal was based on sound business principles as well as job security for the community.
The closure of the factory would harm the local community and the clothing industry.
ôWe are optimistic that the agreement we reached today will take this into account and that it will affirm BrimstoneÆs track record of seeking profitable investments that can also make a positive social impact. Brimstone has an impressive record in investing in successful established companies, start-ups and turnarounds.
ôFurthermore, as a black economic empowerment company, we are acutely aware of the responsibility we have not only to limit job losses in this area but to promote and create sustainable employment opportunities,ö he said.
Although House of Monatic made a minimal contribution to BrimstoneÆs profit in the year to December, Brimstone CEO Mustaq Brey said in March that its forward order book was healthy because of the support of local retailers.
This is BrimstoneÆs second clothing industry rescue operation within a year. In December it stepped in as one of the partners to help save the Novel jeans factory in Atlantis, near Cape Town, which employs 300 people, after the factoryÆs Chinese owners withdrew because of the randÆs strength.
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