Footwear manufacturing plant shutdown represents 360 layoffs

[MilHojas]

Argentina: Footwear manufacturing plant shutdown represents 360 layoffs

Argentina's chainsaw policies with a US dollar so low that everything is expensive nationwide are beginning to take its toll on the local industry: The Grupo Dass sports footwear manufacturing plant in Coronel Suarez, in the province of Buenos Aires, has been closed down - it used to manufacture...

en.mercopress.com

...it used to manufacture articles for the brands Adidas, Nike, and Fila...in the outlook for the supply of products, with a consequent fall in orders over the last year.

 

[Quilombo]

"Reduce prices? Nah, we'd rather fold as a business" seems to be the Argentine model

 

[Ries]

"Reduce prices? Nah, we'd rather fold as a business" seems to be the Argentine model

You think that if you make Addidas, under license, you can just lower Addidas prices on your own? I kinda think the contract with Addidas would be strict on pricing. Addidas does not want authorized made in Argentina shoes showing up in Brazil at below list price.
My guess is their contracts with Nike, and Addidas, and similar multinationals are pretty clear on what they can do.
Argentine brands, on the other hand, are more flexible.
But there is an old saying in bankruptcies- what they lost in profits, by selling below cost, they made up in volume...

 

[Quilombo]

You think that if you make Addidas, under license, you can just lower Addidas prices on your own? I kinda think the contract with Addidas would be strict on pricing. Addidas does not want authorized made in Argentina shoes showing up in Brazil at below list price.
My guess is their contracts with Nike, and Addidas, and similar multinationals are pretty clear on what they can do.
Argentine brands, on the other hand, are more flexible.
But there is an old saying in bankruptcies- what they lost in profits, by selling below cost, they made up in volume...

No, but I do think that businesses here generally prefer to cut off their nose to spite their face. They could stop making them under license, do some white label shoes or clothing instead but nope. My only sympathy lies with the newly unemployed workers.

 

[Ries]

I agree with you there.
And I do think that the tax system overwhelmingly favors the wealthy owners, who pay very little, as opposed to employees.
I dont think the problem is that companies refuse to sell at a loss- I think the issue is the overvalued peso, the impediments to importing and exporting, and the general lack of interest in the powers that be (by which I do not mean the bewigged figurehead) to change much, since the wealthy own all the major corporations, the vast majority of arable land, and are doing just fine.
Somebody has that estimated $400 Billion dollars in US 100 dollar bills that are estimated to be here, and its not the average workers.

 

[QuilmesSlo]

No, but I do think that businesses here generally prefer to cut off their nose to spite their face. They could stop making them under license, do some white label shoes or clothing instead but nope. My only sympathy lies with the newly unemployed workers.

Nobody shuts down a profitable business. Nobody shuts down an unprofitable business that has a path to profitability.