News
Recession bites at the kit men
July 15 2009
New Zealand's most famous rugby brand, Canterbury, has had its European arm placed into administration, with several teams suffering as a result.
Wasps, Leinster, Cardiff Blues and Scotland are the highest-profile teams affected, with several clubs in France - including top 14 champions Perpignan - also fretting over kit deals.
The Scottish Rugby Union (SRU) was forced to cancel a kit launch on Tuesday as a result of the collapse.
The European division of the company has terminated all its sponsorship contracts and laid off 72 of its 86 staff.
Earlier this year, the future of Canterbury's contract with the Springboks was thrown into doubt after its South African licensee failed. A new supplier was found in the nick of time though, and clubs in Europe now face that decision: to wait in the hope Canterbury Europe is bailed out the same way or to look elsewhere fast.
The problem is affecting the brand globally as well. Sports teams in Australia and New Zealand have been told the latest move will not affect Canterbury's local operations, but the company's London-based administrators say the entire group, including divisions in Australia, New Zealand, Japan, South Africa, the Middle East and the United States, is now up for sale as a result of accumulated losses over the past few years.
Canterbury's Australasian chief executive, Scott Chapman, said he had briefed the company's customers and all had been "very, very positive and supportive, which is nice ... at this difficult time."
"This brand is 105 years old and it's been through many, many shareholders.
"It's been through two world wars. When it lost the All Blacks the world was going to cave in, and it's still a very strong brand.
"I'm sure somebody will jump at the opportunity."
The SRU appears to be holding on in the hope that the company will be saved, but Wasps have already set their stall out to look elsewhere.
Among the concerns that the teams will have to weigh up is the effect on fans who, as in the case of Leinster, have just rushed out to buy new replica kits.