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Gildan just closed all Mills for a month

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Old 4 Days Ago Mar 23, 2020 12:07:46 PM -   #1 (permalink)
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Default Gildan just closed all Mills for a month

Just got the email that all Gildan Mills are closing until mid April. That is Gildan, American Apparel and Alstyle Apparel. I don't know what else they make but 2 of those are our big sellers. They may also make the distributor brands as well, such as Port, Tultex, etc.


Here is the text of the message

Dear Valued Customer,

Gildan is today providing a new update in response to the impact of the coronavirus pandemic (COVID-19) on its business and operations.

First, I would like to reiterate that Gildan’s first priority continues to be the health and welfare of our employees, customers, suppliers and other partners which we have been working to address. We are pleased to report that at this time, we have not seen any confirmed cases in our business. As the spread of COVID-19 continues to heighten, governments, companies and individuals have started implementing measures to limit the spread of COVID-19, including the limitation of social gatherings, travel restrictions and the cancellation of various sporting, entertainment, promotional, and cultural events, amongst others, which are having a significant impact on global economic activity. In addition, governments of some of the countries in which we operate have started issuing directives to combat the spread of COVID-19, including mandated shutdowns of facilities.

Accordingly, given the impact of these factors, the Company announced today that it is temporarily suspending production at all of its manufacturing facilities through mid-April. This will allow us to contain COVID-19, respect government recommendations and align production and inventory levels with current demand requirements. All other areas of our business, including our distribution centers, which service the various regions where we sell our products, will remain open with good inventory availability levels to service our customers. These areas will continue to operate for the time being, subject to local government restrictions and guidelines, with appropriate measures in place to protect our employees, including remote working arrangements for many of our office staff. Our sales and marketing teams continue to be fully available to support your business. Should you have any questions or need any support, please contact your sales representative directly.

Finally, it is important to reiterate that you can count on our team to continue to offer you dedicated support during this time of uncertainty and in the future and that this temporary shutdown of our manufacturing facilities will not affect our ability to service your orders.

Given the unprecedented nature of the COVID-19 situation which is changing rapidly, the Company will continue to monitor and adjust its plans for its business as the situation evolves. We will continue to update our customers as needed.
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Old 3 Days Ago Mar 24, 2020 12:48:42 AM -   #2 (permalink)
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Default Re: Gildan just closed all Mills for a month

Not good news for anyone.
Here in Europe stock levels are already hit and miss on larger size black fleece.
 
Old 3 Days Ago Mar 24, 2020 2:13:04 AM -   #3 (permalink)
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Default Re: Gildan just closed all Mills for a month

Nothing to worry about... It's a compulsory but temporary shut-down.
Local supplier stock levels are never reliable to begin with, so I always reserve my own stock months in advance.
 
 
Old 3 Days Ago Mar 24, 2020 12:12:54 PM -   #4 (permalink)
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Default Re: Gildan just closed all Mills for a month

TSC has closed 2 of its warehouses, Fullerton and Philly.
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Old 2 Days Ago Mar 24, 2020 7:35:03 PM -   #5 (permalink)
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Default Re: Gildan just closed all Mills for a month

Hey guys, This whole industry is a just in time delivery endeavor. What do you expect. What with t-shirt styles changing weekly, how can we possibly have any capital er inventory just lying around? Remember the good old days when a semi would drop off 40-50,000 t-shirts and Russell Athletic would give you 6 months to sell them? That company doesn't even exist today! Seems like we have low-balled our way into a short-sighted situation.
 
Old 2 Days Ago Mar 24, 2020 10:16:43 PM -   #6 (permalink)
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Default Re: Gildan just closed all Mills for a month

Quote:
Originally Posted by rpaul
Hey guys, This whole industry is a just in time delivery endeavor. What do you expect. What with t-shirt styles changing weekly, how can we possibly have any capital er inventory just lying around? Remember the good old days when a semi would drop off 40-50,000 t-shirts and Russell Athletic would give you 6 months to sell them? That company doesn't even exist today! Seems like we have low-balled our way into a short-sighted situation.
Well... I have around 30,000 shirts in stock right now. At £3 average, that's just £90,000 in inventory, which is a very reasonable amount for a small business.
 
Old 2 Days Ago Mar 25, 2020 3:48:42 AM -   #7 (permalink)
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Default Re: Gildan just closed all Mills for a month

Thanks Bob, If that is a 3-6 month projection in your sales then you should be covered. Here in the States, t-shirts are like fresh fish. We pay a penalty to book and stock as the price fluctuates in favor of purchase as needed. How can you book at $2.70 when your competitor will buy sale t at $2.20 when they need them?
 
Old 2 Days Ago Mar 25, 2020 7:05:15 AM -   #8 (permalink)
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Default Re: Gildan just closed all Mills for a month

Quote:
Originally Posted by rpaul
Thanks Bob, If that is a 3-6 month projection in your sales then you should be covered. Here in the States, t-shirts are like fresh fish. We pay a penalty to book and stock as the price fluctuates in favor of purchase as needed. How can you book at $2.70 when your competitor will buy sale t at $2.20 when they need them?
Buying in bulk is always cheaper... BUT more importantly, not having the stock I need would be much worse than paying 50 cents more for it.
I'm not competing on price anyway... My shirts are unique and the people buying them don't care if the price is $20 or $23.
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Old 2 Days Ago Mar 25, 2020 8:54:37 AM -   #9 (permalink)
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Default Re: Gildan just closed all Mills for a month

I think this will lead to some out of stock situations this summer
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Old 1 Day Ago Mar 25, 2020 7:10:35 PM -   #10 (permalink)
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Default Re: Gildan just closed all Mills for a month

Quote:
Originally Posted by binki
I think this will lead to some out of stock situations this summer
Yeah, during the panic it won't much matter, as no one has $ for anything other than TP and canned beans ;-) But once demand kicks in again, there is going to be a lag in the supply chain, all the more so because most garments are made far, far away. Might impact Q4
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Old 1 Day Ago Mar 26, 2020 5:03:28 AM -   #11 (permalink)
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Default Re: Gildan just closed all Mills for a month

Quote:
Originally Posted by NoXid
Yeah, during the panic it won't much matter, as no one has $ for anything other than TP and canned beans ;-) But once demand kicks in again, there is going to be a lag in the supply chain, all the more so because most garments are made far, far away. Might impact Q4
There could be a very large shortfall of stock. The countries were some of the garments are made are weeks behind US and European infection levels. They are poor countries who won't have the resources to fight the virus.
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Old 20 Minutes Ago Mar 27, 2020 12:21:18 PM -   #12 (permalink)
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Default Re: Gildan just closed all Mills for a month

It looks like the warehouse in Los Angeles for Next Level Apparel is closed. I haven't seen anything about Los Angeles Apparel.

Specialty Material also shut down for 3 weeks.
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