Eight fashion jobs go to China in reshuffle but most skilled workers stay

Lin Ferguson | 2nd March 2010

Keeping a longtime Wanganui fashion manufacturing operation going in the face of the recession has meant making a tough business decision to lay off  eight staff at Kooky Fashions.

After consultation with staff in December, Kooky management restructured  the operation at its Victoria Ave manufacturing site - but still managed to retain the majority of jobs.

Managing director Jason Dunn said yesterday that last year sound business decisions had to be made to keep a strong manufacturing presence in New Zealand.

 With some work already contracted out to a small boutique factory in China, it was decided that all the fashion label's casual wear would be contracted overseas.

 But Kooky's special occasion fashion, the high-end garments, would continue to be made here in Wanganui, Mr Dunn said.

This has meant that, even though eight machinists lost their jobs in December, 20 staff remain.

"These are highly skilled specialist staff. Many of them have worked here for years and it's great to be able to keep them on because the human cost in an exercise like this is never easy. "

However, the Kooky Fashions factory outlet shop downstairs on Victoria Ave had had to close, he said.

"It was a small shop and it never did particularly well here in Wanganui, so there was no sense in keeping it open any longer."

Kooky Fashions were sold throughout New Zealand with 17 outlet shops, he said.

"We needed to keep our costs competitive and  contracting some of our operation overseas was the answer.

"But our special occasion garments stay right here," he said.

Suzanne Lee-Sowry, co-owner and head designer of the local fashion label, was unfortunately away yesterday.

But in an earlier story Ms Sowry had said she was still able to indulge her quest for the best designs every day because Kooky was one of the few New Zealand labels to still design and manufacture its products in-house.

The company still has 76 staff throughout New Zealand and turned over $5 million last year.

 It has been in expansion mode, opening seven stores since 2006.

 At first  Kooky targeted the regions but its latest store openings last year were in Auckland's Newmarket and Wellington's  central business district.

There  had been seven textile manufacturers in Wanganui in 2000 - now there  were just two, Ms Sowry said.

And, while manufacturing at home costs twice as much, Ms Sowry and Mr Dunn say the benefits outweigh the extra expense for their higher end gear.

 The Buy New Zealand Made campaign had also helped in the face of increased competition from large offshore chains.