Apparel Sourcing Intelligence - Worldwide

Texas cotton growers sell off the former Koramsa as Delta Apparel moves fabric production from US to Honduras

Plains Cotton Cooperative Association (PCCA), a US cotton growers’ cooperative said on June 9 it “looked forward to refocusing our efforts on our core businesses of cotton marketing, warehousing and software services for our members and customers” after selling the Denimatrix denim factory in the US and the jeans factory formerly called Koramsa to a newly formed US acquisitions vehicle owned by private equity.

The vendor’s comments imply that running a Guatemalan jeans factory and a US denim mill were a distraction from servicing its members’ administration needs.

Meanwhile, Delta Apparel forecast on June 4 a 35% reduction in US fabric production, reducing costs, lead times and inventory, by consolidating US fabric manufacture for Honduras-assembled garments into one Honduras garment factory

As with a similar announcement from Fruit of the Loom on April 3 (and Gildan’s May 2 announcement) , Delta will be taking US-spun yarn, moving it into Honduras to make up into fabric, assembling the garment in Honduras, then shipping them back, mostly, to the US. The recent announcements from Gildan, Delta and Fruit of the Loom undermine the widely-held belief more spinning in the US will leverage other US textile or garment jobs