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About Ten Thousand Small And Micro Garment Enterprises In France Can Stay Up To 3 Months At Most.

2020/5/27 12:33:00 0

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In the early May, Eric Mertz, chairman of the French Clothing Industry Federation, once said that after the lifting of the ban in France, many small clothing stores in China will face a sharp decline in passenger traffic and even no customers. At that time, small and micro garment enterprises (including enterprises operating around 1 million 200 thousand euro) will be bankrupt, including underwear, clothing, accessories, clothing supplies and so on. It is expected to cause 100 thousand employees to lose their jobs.

To this end, the French Federation of clothing industry (LA F e d ration natio) Nale de l 'habillement, hereinafter referred to as "FNH", said it would take concrete measures to save more than 30 thousand small and micro garment enterprises.

Eric Mertz said: "compared with the larger garment enterprises, small and micro garment enterprises have been more affected by the epidemic. According to rough estimates, the total inventory of small and micro enterprises in spring clothing is 2 billion 500 million euros. Nearly half of the financial support provided by FNH is used to solve the problem of backlog.

Although garment shops began to open in May 11th, the restart process of the whole industry was still very slow.

A survey by FNH showed that in France, less than 50% of consumers said they had the idea of buying clothes after unsealing, and estimated that the total revenue of the French clothing industry will drop by 40% this year. According to the analysis of FNH, if the major clothing enterprises and brands begin to fight price war immediately, many small and micro enterprises will be faced with bankruptcy directly because of capital problems. Therefore, FNH recommends that the major garment enterprises begin to launch discount activities after August 19th, but this proposal has been opposed by some large clothing brands.

Although FNH has provided help to small and micro enterprises in their capacity, up to now, only 20% of small and micro enterprises have secured state guaranteed loans. Eric Mertz expressed concern about this: "of the 3 000 small and micro enterprises, 1/3 of enterprises (about 1 000) can hold up to 3 months at most."

For this reason, FNH appeals to the French Ministry of economy, finance and industry. It hopes to apply for "solidarity fund" for micro enterprises whose turnover is less than 2 million euros and employs less than 10 people. In 2020, some unemployment benefits were paid to these employees, and some taxes of these enterprises were waived. At the same time, FNH also hopes that banks can extend the repayment period of micro enterprises by one year.