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- Apparel supplier GLG (GLE) has repurposed its operations to produce facemasks during the COVID-19 pandemic
- The company is utilising its available garment fabric inventory to make the masks for global and regional markets
- The U.S. and European retail stores which sell GLG’s apparel are currently closed, but are preparing to reopen
- Despite the positive signs, there are still uncertainties about the company’s realignment and rescheduling of orders
- GLG shares remain grey today, trading for 12 cents each
Apparel supplier GLG (GLE) has repurposed its operations to produce facemasks during the COVID-19 pandemic.
Due to the ongoing worldwide health crisis, the demand for personal protective equipment like facemasks remains high. Unfortunately, in many countries, the available supply of these masks is incredibly low.
Governments around the world have implemented support and assistance programs, allowing companies to survive the economic fallout. Thanks to government-related support mechanisms in countries in which GLG operates, the company has been able to keep its factories open.
As a result, GLG is utilising its factories and available fabric inventory to create the masks for both global and regional markets. This will substitute its usual production of garments, and hopefully mitigate the disruption to its typical garment orders.
The company traditionally supplies apparel to retail stores in the U.S. and Europe. However, the COVID-19 outbreak and related prevention measures have caused those stores to close.
Still, there are positive signs that the retail stores which sell GLG apparel in the U.S. may reopen for the Fall season. This would allow the company to recommence shipments which it had to place on hold.
However, while the reopening of businesses will benefit the economy, it does have its risks. Many countries are starting to emerge from their battles with COVID-19, but others like the US still have high infection numbers. If restrictions there are eased prematurely, this could exacerbate current case numbers, or trigger a second wave of the virus.
Even if this is avoided, there are still uncertainties around the realignment and rescheduling of orders. These will be essential when GLG plans the operations of its production facilities going forward.
Until then, the company is engaging with key retail store customers, to discuss how to endure the ongoing challenges.
GLG shares remain grey today, trading for 12 cents each at 12:48 pm AEST.
