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Nike to close three China factories
Nike Inc (NYSE: NKE) said it plans to halt production at three shoe factories in China and one in Vietnam to reduce output and streamline its supply chain as a result of declining consumer demand.
According to a Reuters report, Nike might also pull apparel orders from other factories around the world. The report goes on to say that Nike uses about 640 factories around the world to produce apparel, footwear and other goods. Nike did not disclose the locations of the factories it might close, but it is the main buyer or sole buyer at all four, which produce shoes for Nike.
Erin Dobson, Nike’s director of corporate responsibility, told Reuters that once the decision is made to close the factories, it will take six to 12 months to phase out orders completely.
“We have begun notification to four factories that we will be discontinuing orders with them,” Dobson told Reuters. “The goal with giving them six to 12 months is it gives them the opportunity to seek new buyers.”
According to the report, Nike makes most its shoes in China, Vietnam and Indonesia, and Dobson said China will remain the company’s largest producer of footwear, equipment and apparel.
Finish Line names new CFO
Finish Line (Nasdaq: FINL) has named Edward Wilhelm as its new chief financial officer, effective March 30.
The duties of CFO have been overseen temporarily by Chief Operating Officer Steven Schneider, who will retain his position.
Wilhelm, who is 50, had been CFO of the book retailer Borders Group Inc. since 2000, and earlier he had worked for Kmart Corp.
Foot Locker secures $200 million credit facility
Foot Locker Inc (NYSE: FL) said on Tuesday it secured a $200 million, four-year revolving credit facility from a group of lenders, according to a Reuters report.
Nike said in a regulatory filing that it might make up to four requests for additional credit commitments that would not to exceed a total of $100 million.
According to the report, the credit facility could be used to issue letters of credit, to finance the acquisition of working capital assets in the ordinary course of business and capital expenditures, and for general corporate purposes.
–Compiled by Marcus Woolf
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