The firm in question, PT Pan Brothers, makes clothes for Ralph Lauren, Prada and Adidas. But in debt markets is faltering badly. The manufacturer’s dollar bonds slid this week to record lows of about 37 cents on the dollar after it postponed a new global debt offering and had to get a temporary extension from creditors on a loan in the U.S. currency.
As the second-biggest listed clothing firm in Indonesia, Pan Brothers is signalling wider stresses in the industry. Apparel is one of Indonesia’s top 10 non-oil and gas exports, and the sector was among the hardest hit last year as the pandemic curtailed demand. Overseas shipments fell 18.7% annually, according to the nation’s statistics bureau.