TFG buys House of Monatic
TFG's acquisition will save Monatic from the brink of closure.
Details of the sale haven’t been disclosed, but historic Cape Town brand House of Monatic has been navigating stormy waters since last year when its turnover reduced by 57 percent to R58.6 million, from R137.3 million in 2019.
The company, owned by Brimstone Investments, retrenched 120 workers and began negotiations with retail groups to take over its production facilities and manage the staff.
In 2019, the company underwent a restructuring process that affected a further 140 staff members. Brimstone had announced a loss of R44.1 million from the House of Monatic operations in the previous financial year, 2018.
In all likelihood, the business would have to shut down operations after years of operating at a loss if it were not for the TFG deal. General secretary of the South African Clothing and Textile Workers Union (SACTWU) Andre Kriel welcomed the sale, while acknowledging that reductions were likely regardless. He added that the Foschini Group has been quite open about their future strategy. “The one is increasing local procurement, and secondly to increase local jobs within the industry,” added Andre.
“Although it is very sad to dispose of the House of Monatic factory operation, the impact of Covid-19 on Monatic has been catastrophic to put it mildly,” says Brimstone FD Geoff Fortuin. “The formal wear clothing market has virtually disappeared from a Monatic point of view and orders dried up, making the business completely unsustainable. We are, however, delighted that we were able to find a large clothing manufacturer to sell the manufacturing assets to, who will also continue to employ factory-related staff.”
The 100-year-old brand is known for its suits and tailoring, and produced the Carducci and CSquared brands.