Le Tanneur to cease US operations
The French leather goods group Le Tanneur said last week that it is to shut down its US operations.
The company attributed the decision to the continuing economic slowdown in the US which had resulted in far fewer sales than it had hoped for. Launched as recently as December 1999, the US division accounted for only 5.5 per cent of Le Tanneur’s turnover last year. In one sixth month period the division accounted for losses totalling Eur1million ( $903,000).
Despite having increased turnover by 37% to Eur24.2 million in the first eight months of 2001 and anticipating a 20% increase in sales for the year, Le Tanneur said it expects to turn in a year-end loss of between Eur5.5 million and Eur6 million. Overcapacity at its branded luxury goods factory at Belley, France, the rise in leather prices brought about by cattle diseases, and a major customer cutting back on its order book by 80% are thought to be the main factors.
