Lessons from Another Day. Or Why Pittards Coudn't Save Its Own Hide

That Pittards closed just a year or two before the company was planning to celebrate its 200-year anniversary, was indeed a matter of immense sadness for Mike Redwood, who retired some years ago from a 50-year-long career in the leather industry. 

"In terms of the big picture it shows three points worthy of mention, but unlikely to be a surprise to any thoughtful tanner:

1. There is general worldwide overcapacity in almost every sector of the tanning industry.
2. In a time of poly crisis every tanner who has a chance to survive must have a strong balance sheet.
3. It is very difficult to swap production from one country to another or to vary your raw material.

Pittards struggled with the latter two all this century and consequently fell foul of the first."

Redwood believes the departure of Pittards is notable as they became a worldwide brand name as a big quality, innovative maker of glove leather. "In fact, I played a small part in that in the 1980s when I was Sales and Marketing Director. But their gloving success had been built on the back of imported hair sheep, with the best quality from Ethiopia."

The first major mistake that Pittards made was at the dawn of the modern era of globalisation. Recollects Redwood, "In 1991, they turned down a request from the Ethiopian government to buy a large tannery in that country in order to help it develop by adding more value locally. The decision not to do so was probably their biggest error. They were financially strong and had good technical staff with some living permanently in Ethiopia to help the local tanners with early-stage processing." The company had no clue what shape or form globalisation would take, and what globalisation would bring in its wake.

"Instead, they bought more domestic UK tanneries using UK raw material which they felt was a better strategic move. Generally, European tanners shifting from overseas raw to European raw stock have got into trouble. There are many such examples as India reduced its semi-processed exports to make finished leather and products. Pittards found themselves trapped in declining sectors like chamois and garment leather using UK skins or highly competitive ones like bovine footwear where their scale and location could not keep pace in a changing world."

This pinched the company's bottomline. "Big declines in sales put their pension fund in enormous deficit, and when they went through a UK equivalent on Chapter 11 to ditch it, they emerged with an exceptionally weak set of finances which they never managed to correct. They did manage to buy an Ethiopian tannery, but nearly twenty years too late and without the funds to make big improvements. They struggled on but the end felt inevitable, and the words most commonly heard at the end were those of 'shock but not surprise'."

Redwood did have the opportunity to visit their Ethiopian factories in 2019—shortly before COVID-19 started wreaking mayhem. "From the top down in Ethiopia there is an excellent management team and quite good facilities. Let us hope that those plants will survive and be able to continue providing valuable employment into the future in some format or other."

Five months later, the tannery and glove factories in Ethiopia are still said to be running. "If this proves to be true and Pittards can build a new future out of Ethiopia with luck it can build its next 200 years of history in the fast-evolving African market. After completing 200 years of overall success in the UK—much of it through building a reputation based on applying leading-edge technical skills to Ethiopian raw material--this might well mark a fitting transition.

"This is despite the fact that it has been a most uncomfortable few years for all parties and a distressing end for many employees and the community in Southwest England. I hope that some small presence can be retained or rebuilt in their home time Yeovil perhaps via continued link to the local football team “The Glovers” or via a shop or design studio."

The Pittards story is close to the hearts of many in industry, and just as personal. Reminisces Geoff Holmes, now Director at New Zealand Leather and Shoe Research Association, "I started at the company when I was 22. It was my first job. The company was amazing to work for. I believe they were the most technically advanced tannery group at the time and had a group technical team." As a researcher technician, Holmes was given full reign to develop new ideas, and they funded him through his leather degree at the University of Northampton. 

Holmes left but returned twice to work for them, at their Leeds factory and again in Yeovil. "At this time, the bovine tannery in Leeds had unfortunately lost a major contract and the decision taken to consolidate production on one site. I see Mike Redwood mentioned (in a moving first-person account) the lack of specialisation in bovine leathers being part of their undoing, but I had no contact with them during this phase so cannot confirm. 

"Of course, the UK leaving Brexit, the complications of running production in Yeovil and Addis Ababa simultaneously and the cost of producing leathers in the UK as electricity prices skyrocketed would have been hugely challenging. Mike called it "death by a thousand cuts". Still, such a shame to see such a storied and technical company close."

Adds Joseph Ondari Nyakundi, a leather scientist and technologist at the Leather Research Laboratory across the Atlantic in the US, "The closure of Pittards will alter market dynamics within the industry, potentially affecting supply chains and pricing. This closure could also signal broader challenges facing the leather industry, such as changing consumer preferences, increased competition from substitute materials, supply chain issues, or economic downturns.”

However, Luis A Zugno, Executive Secretary of the IULTCS (International Union of Leather Technologists and Chemists Societies), feels "the closing of Pittards is an isolated case and does not represent the status quo of the leather industry today. Without knowing all the details, if I had to guess is because they have not adapted fast enough to the marketplace needs: product, price, and quality."

But the lesson’s there for all to see. Points out Holmes, "Most leather manufacturers worldwide have seen shrinking order books and technical leather producers are no exception. They rode the advances of better dye fastness, dry soft technology, water resistance and other advancements."

Zugno emphasises on constant adaptation. "In recent years, very few tanneries and chemical suppliers have closed (we had some consolidations however). Through the decades, I have observed that quality leather manufacturers with innovative products very seldom close down. Today, we still have investments in tannery remodelling and new tanneries are being built. Italy is the greatest example of investment in creative leather manufacturing with the proper machinery, chemicals, quality, art, and craft. These factors consolidate Italy’s leading position today and prepare them for the future of leathermaking.

Vasan Suri, Business Development Manager at India's Alina Pvt Ltd, echoes: "Pittards' over the years grew in size and volume of production but could not survive the onslaught after COVID-19. The running cost of the business remained at the same level but the sales were going down."

Suri believes a company can't afford to rest on its laurels, and instead should keep pruning the team for efficiency. "Accept the market challenge and bring in a new range of products to make customers get interested to buy. Innovation is the key."

The closure of such a longstanding company, according to Nyakundi, also highlights some of the challenges that the industry has been facing in the recent past, including changing market dynamics, material sourcing, economic recession or unforeseen events such as the recent pound crash, rising interest rates, and inflation. 

"After COVID-19, many industries have also failed to recover and return to optimal operations as many supply chains were disrupted, making it difficult for companies to get the needed resources. This calls for sound financial strategies and contingency plans to weather economic downturns or unexpected crises to cushion industries at such times as well as adaptability to the changing market dynamics."

But taking off from what Redwood says about a possible resurrection, is there still a cricketing angle lurking somewhere? After all, Ian Botham was known to have pulled off the greatest phoenix feats in the annals of cricket folklore. So, can Pittards pull off a Bothamesque exploit?