Pittard Leeds may close

Published: 03 December, 2005

Pittards are considering the closure of their loss-making factory in Leeds which will affect around 300 workers. According to the Yorkshire Post, 'the producer of leather for Timberland shoes and Adidas football boots blamed high running costs and disappointing sales for its decision to review the future of the site, which it has run since the 1970s.' The plan is to relocate production to Yeovil and Ethiopia.

According to Hidenet.com, Pittards chairman S D Boyd announced to stockholders that plans to reduce costs are progressing, but that certain tough decisions may be forthcoming due to heavy losses which continue to be incurred. A pre-tax loss of £1.5 million for the first six months of 2005 was blamed on higher chemical, fuel and waste treatment costs. Boyd said that the Leeds operation had lost heavily in 2004 and also in the first six months of 2005. Now it has seen a very rough third quarter, as well, attributed to poor sales and various energy and waste treatment expenses, prompting Pittards to consider the eventual closure of the Leeds facility. If it did so, Pittards would be able to consolidate their operations between their Yeovil and Ethiopian plants and save considerable fixed costs.

In August of this year, Pittards won a management contract of the largest tannery in Ethiopia, The Ethiopian Tannery Share Company, in a move that should enhance their leather business from cheap gloves to luxury items.

Furthermore, should the firm decide to close Leeds, Boyd explained, the cost of closure would more than be offset by the resale of the freehold factory. Leeds currently employs about 330 people and has a capacity to tan between 5,000-6,000 hides per week.

Printer friendly version

Email this article to a friend