A `crazy' Gamble Revies An Ailing Industry
The Age
Monday January 17, 1994
Jack Frazer and his long-time colleague Jim Neal thought about buying Bradmill Textiles for seven months before Mr Frazer took the punt and did it.
It was, says Mr Neal, a big gamble. ``Some thought we were crazy to take the risk because of the state the textile, clothing and footwear industries were in," he said.
Not only that: Bradmill, a Yarraville-based firm that Mr Frazer took over 12 months ago, had not had an easy time. Bought by the international giant Sara Lee after the collapse of its previous owner, the Linter Group, it had just marked time until Mr Frazer took over.
But now, says Mr Neal, both he and Mr Frazer are ``very happy with the results".
Mr Frazer merged two of Bradmill's subsidiaries, Grange and Jacquard.
The combined business, Grange Jacquard, sells 90 tonnes of fabric a week to garment manufacturers.
Grange Jacquard does what the Government has entreated manufacturers to do: it has added value to Australian wool by knitting, dyeing and printing it.
Under the stewardship of Mr Neal, the once under-capitalised business is working 24 hours a day, seven days a week. Mr Frazer boasts that Grange Jacquard is the most successful company in the Bradmill group.
Mr Neal said the turnaround was achieved by exploiting the economies of scale that came from combining Grange and Jacquard.
``There were also economies of scale to be had from combining Bradmill with Jack Frazer's company, Undare, which weaves, knits, dyes and prints fabric to finish product."
A big cash injection to finance modern equipment has turned Grange Jacquard from a candidate for the rust belt to a world-class textile manufacturer.
``The reduction of tariffs and quotas has not impacted on our business at all," Mr Neal said.
However, he admitted that the company had been unable to increase prices for finished fabrics during the last five years.
``Margins are tight. We've had to be cost effective in the way we manage the business. But our focus has been on modernising and how we were going to run it," he said.
© 1994 The Age