Apparel Online India Magazine April 1st Issue 2019 | Page 42

INDUSTRY LIVE APPAREL RESOURCES NEWSLETTERS FACEBOOK FRIENDS To subscribe, send us an email at [email protected] Join more than 10,000 people who are already fans of Apparel Resources on facebook. Search for Apparel Resources at https://www.facebook.com/apparelresources/ Diesel CEO Marco quits; company files for Chapter 11 Italian retail clothing brand Diesel has been witnessing a lot of turbulences lately. Its US subsidiary filed a voluntary petition for relief under Chapter 11 and is hunting for a new CEO. Marco Agnolin, who currently holds the position, is leaving the Italian jeanswear company. The decision was taken after a common agreement between the owner and management of OTB, the group behind the Diesel brand. Although for some months, Agnolin will continue to be part of the Board of Directors in order to complete all the activities planned previously. Till now, Diesel is yet to announce who will succeed Agnolin as the next CEO. Agnolin joined Diesel towards 2017-end. Prior to this, he worked for the Inditex Group as Director for Bershka since 2011. On the other hand, Diesel has filed a voluntary petition for relief under Chapter 11, which provides an opportunity for INDIA ALSO FACES HEAT companies to reorganise, while continuing day-to-day operations. Last year, the company announced a decline of 2.4 per cent in revenues, which totalled 1.52 billion euros. The filing is a critical step in enabling Diesel to address certain long-term liabilities to have a fresh start in the country to build a healthier and stronger new presence for the brand in line with the evolving US retail environment. For 2019, Diesel is planning several new experiences in North America’s key influential cities such as New York, Los Angeles and Miami, where a number of pop-up stores will open with special themes to drive product exclusivity, fuel equity, social amplification, drop culture and fashion credibility. As per the industry-informed people, there are more than 15 Indian exporters working for Diesel, US. These vendors mainly supply tees, shirts and undergarments to the brand, and are under pressure, especially with regard to booking further orders. One of the Bangalore- based mid-level vendors of Diesel confirmed Apparel Online that his payment was cleared but there is a major setback with regard to further business. On the other hand, some of the big export houses are struggling on payment front. The issue is also under discussion at the Tirupur Exporters Association (TEA). Apparel Online approached Diesel’s Chennai office but could not get response at the time of writing this news. Mukta Group of Industries entering into garmenting For many companies, vertical integration is the key to growth. Many textile companies across India are following this route. The fresh name in this list is Mukta Group of Industries. Kolhapur- based Mukta Group is known for fabric and is now starting its garment factory with 500 machines. It will manufacture formal and casual shirts for domestic market initially. To begin with, 150 machines will be installed and later the facility will be expanded completely. The production is expected to start in April this year. 42 Apparel Online India | “Our company is already doing well in fabric manufacturing and export. Many garment exporters are our clients, so our management decided to venture into shirt manufacturing. We will explore online platforms also,” informed Digambar Patil, GM of the company, who recently visited a garment technology fair so that he could explore the latest technology. Producing 2.5 lakh metres per month, Mukta Group of Industries is known for woven fabric production. The company is very enthusiastic about its new initiative and is expecting good growth in the coming years. APRIL 1-15, 2019 | www.apparelresources.com Digambar Patil, GM, Mukta Group of Industries, Kolhapur