Take advantage of your networks: Johnstons of Elgin CEO

All textile businesses, however large or small, should rely more heavily than ever on their network and to use organisations like the UK Fashion & Textile Association (UKFT) for expert advice during the ongoing Covid-19 pandemic, according to Simon Cotton, CEO of Johnstons of Elgin, UK’s largest textile employer having a fully vertical operation.

 

All textile businesses, however large or small, should rely more heavily than ever on their network and to use organisations like the UK Fashion & Textile Association (UKFT) for expert advice during the ongoing Covid-19 pandemic, according to Simon Cotton, CEO of Johnstons of Elgin, UK's largest textile employer having a fully vertical operation.#

"It (network) will not only help you make better decisions, but it will also help relieve some of the burden of responsibility, which I know rest very heavily when your decisions affect both jobs and lives," Cotton said in a UKFT release.

 

All textile businesses, however large or small, should rely more heavily than ever on their network and to use organisations like the UK Fashion & Textile Association (UKFT) for expert advice during the ongoing Covid-19 pandemic, according to Simon Cotton, CEO of Johnstons of Elgin, UK's largest textile employer having a fully vertical operation.#

Speaking about the significant support available from the UK government, particularly through the Business Interruption Loan Scheme and the Job Retention Scheme, Cotton said: "These schemes are superficially excellent, but understanding the detail of exactly how they will apply is very difficult, as the information supplied by the government so far lacks the necessary detail. …None of us have the information we need to make perfect decisions. We have made the best estimates we can based on the expert advice we have taken, but I am sure some of those interpretations will turn out to be incorrect."

 

All textile businesses, however large or small, should rely more heavily than ever on their network and to use organisations like the UK Fashion & Textile Association (UKFT) for expert advice during the ongoing Covid-19 pandemic, according to Simon Cotton, CEO of Johnstons of Elgin, UK's largest textile employer having a fully vertical operation.#

Stating that there is much uncertainty in the current phase, Cotton said they are working hard to stay in touch with customers and consumers. "There are opportunities in ecommerce, but we are being very sensitive about how we approach these. Our social media engagement levels are at record highs and our brand followers have a particular interest in our human stories, about our history and our people. Sometimes those engagements turn into orders but more often, they simply keep our brand connected to those who will form our customer-base when normal life resumes."

 

All textile businesses, however large or small, should rely more heavily than ever on their network and to use organisations like the UK Fashion & Textile Association (UKFT) for expert advice during the ongoing Covid-19 pandemic, according to Simon Cotton, CEO of Johnstons of Elgin, UK's largest textile employer having a fully vertical operation.#

Talking about the next phase of restarting operations, he said, "We have no idea of knowing when that may be, but we plan to take this also in phases, with a very small core team preparing the ground work for at least two phases of return. As with the close down process, those decisions will be debated extensively but quickly, and decisions will be made collectively.

 

All textile businesses, however large or small, should rely more heavily than ever on their network and to use organisations like the UK Fashion & Textile Association (UKFT) for expert advice during the ongoing Covid-19 pandemic, according to Simon Cotton, CEO of Johnstons of Elgin, UK's largest textile employer having a fully vertical operation.#

"This phase presents even more dangers than closing down, as we need everyone to be comfortable that they are returning to a place which is as safe as it can possibly be. If we move too early, we risk damaging employee goodwill or making the health crisis worse and we may lose the opportunity the Job Retention Scheme brings to save costs which we may not need. If we move too late, we risk letting down customers or losing them."

 

All textile businesses, however large or small, should rely more heavily than ever on their network and to use organisations like the UK Fashion & Textile Association (UKFT) for expert advice during the ongoing Covid-19 pandemic, according to Simon Cotton, CEO of Johnstons of Elgin, UK's largest textile employer having a fully vertical operation.#

The recovery phase will follow restart. "In this phase we anticipate cancelled and postponed orders, as well as orders which are urgently needed. Good planning and customer relationship management will be critical and production efficiency will suffer, as we push and pull orders to fit our capacity and meet customer needs. It will be a busy time as we all emerge from the enforced idleness of lockdown," he added.

 

All textile businesses, however large or small, should rely more heavily than ever on their network and to use organisations like the UK Fashion & Textile Association (UKFT) for expert advice during the ongoing Covid-19 pandemic, according to Simon Cotton, CEO of Johnstons of Elgin, UK's largest textile employer having a fully vertical operation.#

After recover, companies will face the 'new normal'. "Will we enter a prolonged recession or depression? How will workers who have been working from home for weeks on end want to dress when they come to the office? Will international travel patterns be changed in the mid-term and long-term? Most importantly, how will retailers and brands unwind their stock positions and repair their balance sheets over the next few years," are some of the questions for which there are no sure answers at the moment, according to Cotton.

 

All textile businesses, however large or small, should rely more heavily than ever on their network and to use organisations like the UK Fashion & Textile Association (UKFT) for expert advice during the ongoing Covid-19 pandemic, according to Simon Cotton, CEO of Johnstons of Elgin, UK's largest textile employer having a fully vertical operation.#

Into this mix health and mental health of staff; risk of bad debts; risk to supply chains; currency and raw material volatility and the risks and uncertainty still associated with Brexit, can be added.

 

All textile businesses, however large or small, should rely more heavily than ever on their network and to use organisations like the UK Fashion & Textile Association (UKFT) for expert advice during the ongoing Covid-19 pandemic, according to Simon Cotton, CEO of Johnstons of Elgin, UK's largest textile employer having a fully vertical operation.#