Hoftex Group Closes Neutex Weaving; Will Focus On Made-to-Measure Home Textiles
January 26, 2024
Matthias Hanitsch, CFO, Rohleder, Konradsreuth, Germany with wife Nicole and Joseph Wheeler, MD, Neutex, Muenchbetg, Germany
MUENCHBERG, GERMANY – Neutex, a member of the publicly held Hoftex Group is closing its decorative fabrics weaving operations which has been doing business since 1965 according to Joseph Wheeler, Managing Director Sales & Marketing.
While the weaving here will cease March 1, Neutex will operate a new business as a custom sewing, product development and sourcing specialist, Wheeler says. Going forward, Neutex will focus on the growing segment of made-to-measure home textiles and sun protection solutions.
Neutex customer targets will be retailers and jobbers.
The mill will close owing to a declining market for home textiles, price pressure and significant cost increases Hoftex states. “Neutex has been affected by a generally declining market for home textiles, continuous price pressure from foreign producers and especially by significant energy cost increases. As a result, an economically viable, fully integrated production in Germany is no longer possible, so that the decision to close fabric production in Muenchberg has become necessary,” the company states.
The two other divisions of the Hoftex Group, Tenowo which focuses on technical textile products and non-woven fabrics, and Hoftex which produces dyed and twisted yarn, are not affected by this decision.
In the future, the Neutex division will focus on the growing segment of made-to-measure home textiles and sun protection solutions whose design and execution can be individually configured by customers. Neutex Home Deco GmbH in Muenchberg will continue to handle sales and distribution as well as product development.
Likewise, the Romanian subsidiary SC Textor S.A. will be dedicated to the confection of more than one million ready- mades annually. The decorative textiles previously manufactured in the Muenchberg production facility, will be procured from third-party suppliers in the future, Hoftex says.,
“The EBITDA forecasted in the 2022 annual report for the 2023 fiscal year of €12.0 to €14.0 million will not be reached according to the current estimate. This is especially due to the financial effects relating to the partial closing and business performance of Neutex, which was below expectations,” the company says.
For the 2023 fiscal year, the management board now expects an EBITDA of €8.0 to €10.0 million and group revenues of around €160.0 million (the original forecast of the group revenues for the 2023 fiscal year was €160 million to €180 million).
Wheeler points out the decision to stop weaving was not an easy one. “Energy costs alone have risen 300% in Germany. We also had to let 90 people go from a 180-man operation here.”
The Hoftex Group AG (formerly Textilgruppe Hof AG), headquartered in Hof (Bavaria), acts as the financial holding company for a group of medium-sized companies in the textile industry. In 2022, the group achieved consolidated sales of EUR 153.8 million and currently employs around 1,000 people worldwide.
The Hoftex Group is one of the largest family-run textile companies in Europe and has shaped the international textile industry for around 170 years. The main activities of the group are the production of raw and colored yarns, the production of nonwovens for technical applications and the clothing industry.
The Hoftex Group AG maintains production locations in Germany, Europe, North America and China and supplies product to the automotive, textile and consumer goods industries including retailers. The shares of Hoftex Group AG are listed in the small and mid- cap segment access of the Bavarian Stock Exchange in Munich.
While the weaving here will cease March 1, Neutex will operate a new business as a custom sewing, product development and sourcing specialist, Wheeler says. Going forward, Neutex will focus on the growing segment of made-to-measure home textiles and sun protection solutions.
Neutex customer targets will be retailers and jobbers.
The mill will close owing to a declining market for home textiles, price pressure and significant cost increases Hoftex states. “Neutex has been affected by a generally declining market for home textiles, continuous price pressure from foreign producers and especially by significant energy cost increases. As a result, an economically viable, fully integrated production in Germany is no longer possible, so that the decision to close fabric production in Muenchberg has become necessary,” the company states.
The two other divisions of the Hoftex Group, Tenowo which focuses on technical textile products and non-woven fabrics, and Hoftex which produces dyed and twisted yarn, are not affected by this decision.
In the future, the Neutex division will focus on the growing segment of made-to-measure home textiles and sun protection solutions whose design and execution can be individually configured by customers. Neutex Home Deco GmbH in Muenchberg will continue to handle sales and distribution as well as product development.
Likewise, the Romanian subsidiary SC Textor S.A. will be dedicated to the confection of more than one million ready- mades annually. The decorative textiles previously manufactured in the Muenchberg production facility, will be procured from third-party suppliers in the future, Hoftex says.,
“The EBITDA forecasted in the 2022 annual report for the 2023 fiscal year of €12.0 to €14.0 million will not be reached according to the current estimate. This is especially due to the financial effects relating to the partial closing and business performance of Neutex, which was below expectations,” the company says.
For the 2023 fiscal year, the management board now expects an EBITDA of €8.0 to €10.0 million and group revenues of around €160.0 million (the original forecast of the group revenues for the 2023 fiscal year was €160 million to €180 million).
Wheeler points out the decision to stop weaving was not an easy one. “Energy costs alone have risen 300% in Germany. We also had to let 90 people go from a 180-man operation here.”
The Hoftex Group AG (formerly Textilgruppe Hof AG), headquartered in Hof (Bavaria), acts as the financial holding company for a group of medium-sized companies in the textile industry. In 2022, the group achieved consolidated sales of EUR 153.8 million and currently employs around 1,000 people worldwide.
The Hoftex Group is one of the largest family-run textile companies in Europe and has shaped the international textile industry for around 170 years. The main activities of the group are the production of raw and colored yarns, the production of nonwovens for technical applications and the clothing industry.
The Hoftex Group AG maintains production locations in Germany, Europe, North America and China and supplies product to the automotive, textile and consumer goods industries including retailers. The shares of Hoftex Group AG are listed in the small and mid- cap segment access of the Bavarian Stock Exchange in Munich.
