‘Leicester is embargoed’: City’s clothing industry in crisis
You probably recall the stories about Leicester’s clothing industry in recent years: grim labour conditions, pay below the minimum wage, “dark factories” serving the fast fashion sector. What is less well known is what happened next. In short, the industry has cratered.
In the wake of the recurrent scandals over “sweatshop” conditions in Leicester, the majority of major brands have now abandoned the city, triggering an implosion in production in the place that once boasted that it “clothed the world”.
And now Leicester faces a further existential double-threat: competition from Chinese companies like Shein and Temu, and the impending arrival of cheap imports from India, following the recent trade deal signed with the UK. Many worry it could spell an end for the city’s fashion business altogether.
Gauging the scale of the recent collapse is challenging because many of the textile and apparel factories in Leicester are small operations that can start up and shut down rapidly, but according to data provided to Sky News by SP&KO, a consultancy founded by fashion sector veterans Kathy O’Driscoll and Simon Platts, the number has fallen from 1,500 in 2017 to just 96 this year. This 94% collapse comes amid growing concerns that British clothes-making more broadly is facing an existential crisis.
A trade fair tries to reignite enthusiasm for the local clothing industry
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In an in-depth investigation carried out over recent months, Sky News has visited sites in the city shut down in the face of a collapse of demand. Thousands of fashion workers are understood to have lost their jobs. Many factories lie empty, their machines gathering dust.
The vast majority of high street and fast fashion brands that once sourced their clothes in Leicester have now shifted their supply chains to North Africa and South Asia.
And a new report from UKFT – Britain’s fashion and textiles lobby group – has found that a staggering 95% of clothes companies have either trimmed or completely eliminated clothes manufacturing in the UK. Some 58% of brands, by turnover, now have an explicit policy not to source clothes from the UK.
Seamstresses in one of the city’s former factories
Clothing industry workers in Leicester
Jenny Holloway, chair of the Apparel & Textile Manufacturers Association, said: “We know of factories that were asked to become a potential supplier [to high street brands], got so far down the line, invested on sampling, invested time and money, policies, and then it’s like: ‘oh, sorry, we can’t use you, because Leicester is embargoed.'”
Tejas Shah, a third-generation manufacturer whose family company Shahtex used to make materials for Marks & Spencer, said: “I’ve spoken to brands in the past who, if I moved my factory 15 miles north into Loughborough, would be happy to work with me. But because I have an LE1, LE4 postcode, they don’t want to work for me.”
Shahtex in Leicester used to make materials for Marks & Spencer
Tejas Shah, of Leicester-based firm Shahtex
Threat of Chinese brands Shein and Temu
That pain has been exacerbated by a new phenomenon: the rise of Chinese fast fashion brands Shein and Temu.
They offer consumers ultra-cheap clothes and goods, made in Chinese factories and flown direct to UK households. And, thanks to a customs loophole known as “de minimis”, those goods don’t even incur tariffs when they arrive in the country.
An online advert for Chinese fast fashion company Shein
According to Satvir Singh, who runs Our Fashion, one of the last remaining knitwear producers in the city, this threat could prove the final straw for Leicester’s garments sector.
“It is having an impact on our production – and I think the whole retail sector, at least for clothing, are feeling that pinch.”
Inside one of the city’s remaining clothesmakers
While Donald Trump has threatened to abolish the loophole in the US, the UK has only announced a review with no timeline.
“If we look at what Trump’s done, he’s just thinking more about his local economy because he can see the long-term effects,” said Mr Singh. “I think [abolishing de minimis exceptions] will make a huge difference. I think ultimately it’s about a level playing field.”
A spokesperson for Temu told Sky News: “We welcome UK manufacturers and businesses to explore a low-cost way to grow with us. By the end of 2025, we expect half our UK sales to come from local sellers and local warehouses.”
Travellers have been warned to expect disruption to trains in Scotland today as the country continues to feel the effects of Storm Floris.
Services are likely to be affected as the storm – which brought winds of up to 124mph on Monday, bringing down trees and power lines, closing roads and cancelling flights – blows through.
The Scottish government held an emergency meeting last night to discuss the “significant disruption” caused and the efforts under way to recover, as rail operators look to clear routes covered by debris and utilities firms work to reconnect properties experiencing power outages.
Ross Moran, Network Rail Scotland’s route director, said teams had been “working tirelessly to keep services moving where possible and to clear fallen trees and debris from the tracks”.
By the evening, their focus had switched to “inspecting routes which have been closed by fallen trees, debris and other damage”, and work will continue into today.
“We’re grateful to passengers for their patience whilst we do this,” Mr Moran added.
(L-R) Frances Kusz, Jack Kusz, Paul Audoire and Robert Kusz waiting at Glasgow Central Station. Pic: PA
Most weather warnings have expired, but a yellow warning for wind is in place until 8am over the Shetland Islands and Orkney, and showers will remain throughout the rest of Scotland.
Rail, road, and ferry travel was disrupted by the storm on Monday, as 100 Edinburgh Fringe events were cancelled, according to organisers.
At one point, more than 30,000 people were without power.
A worker removes a fallen tree on the A82 road near Onich. Both pics: Reuters
At least 68 flights were cancelled, aviation analytics firm Cirium said, with Aberdeen and Belfast City the worst-affected airports.
Western coastal areas bore the brunt of the storm, but strong winds and heavy rain affected much of the rest of the country.
Police received “multiple reports” of camper vans blown over on the A87 between Broadford and Portree on Skye, while in Aberdeenshire the A96 was closed in both directions near Old Rayne because of fallen trees.
Fallen trees have also seen a number of other roads closed, including the A95 Rosarie road in both directions, while the A9 at Daviot was partially blocked by a fallen tree and the A1 Tyne Bridge was only open to cars and single-decker buses.
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Watch: Bumpy landing for plane in Storm Floris
Those driving in poor weather have been urged to avoid the worst-hit areas and slow down when on the roads while allowing time for delays.
Ferries have also seen widespread disruption, with ferry operator CalMac cancelling a number of sailings because of high winds.
Monday’s top wind speed was 124mph at Cairngorm, a mountain range in northern Scotland, according to Met Office data.
Sky News weather producer Christopher England said Tuesday would be a “much calmer”, though still windy – see your local forecast here.
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