Business closures blamed on corporate takeover of Townsville’s uniform market

Money talks when it comes to Townsville schools selecting uniform suppliers, with well-paying corporations being preferenced over local businesses. See how it played a hand in two business closures.

Tropic Tshirts Cathy Sherman and Georgio Clothing's Georgia and Richard Pengelly have spoken out about the impact of corporate influence on the local school uniform market. Pictures: Supplied.

The closure of two veteran clothing businesses within a month has been blamed on a corporate takeover of Townsville school uniform market, where penny-pinching schools are being criticised for handing over exclusive logo rights in exchange for financial incentives.

In June, 33 year old small business Tropic Tshirts announced its closure after being squeezed out of the uniform market by two corporate competitors – The School Locker and Lowes – causing its range of 30-40 schools to collapse to less than 10.

Tropic Tshirts manager Cathy Sherman said they couldn’t compete “with the two big names”.

“They’re able to offer back the schools more money, because nowadays schools have the ownership of all the logos, so you have to get permission from them to actually use it,” Ms Sherman said.

“We’ve been losing a couple of schools every year where they don’t give us the permission to have the new uniform … (we) can’t make money anymore … (and) decided it wasn’t viable to stay open anymore.”

Tropic Tshirts Townsville manager Cathy Sherman before the business closed. Picture: Evan Morgan

The situation was echoed at clothing manufacturer Georgio Clothing, which will close this month after also operating in the city since 1992, with its co-owner Georgia Pengelly taking aim at the corporate financial influence on schools.

“We used to supply just about every single school either into their own school shop or we had a big retail shop,” she said.

“But then The School Locker came along (about nine years ago) and went to every school and offered them incentives that we possibly couldn’t match because our stuff was locally made and their stuff comes from overseas, and then school by school, they just left and went to The School Locker, because the incentive was so large.

Tropic Tshirts closed after operating for more than three decades. Picture: Supplied.

“The School Locker has tried very, very hard to put us out of the picture, which they have done, because it’s all financial, isn’t it? (They) definitely had a target for all our customers, and in the end, they took every single one.”

With the Georgio Clothing having just five different Townsville school’s uniforms left on their racks, she said there was “no loyalty whatsoever” from schools when it came to supporting local businesses.

Georgia and Richard Pengelly, owners Georgio Clothing, are retiring, after their customer base collapsed due to corporate influence. Picture: Shae Beplate.

“It’s just who can give them the most money. That’s all they’re interested in. Now we’ve come to like this day in July where there will be no one who can manufacture anything locally. We were the last factory in the town,” she said.

The Townsville Bulletin previously reported in 2017 about parents being dismayed after Kirwan State High School’s decision to shift from local supplier Tropic T-shirts to the major clothing chain Lowes, claiming the new uniforms cost more and items would not all arrive in time for the first day of class.

A Department of Education spokesman said school suppliers had been able to offer “remuneration” historically.

“However, this has since been removed and as historic contracts lapse, its presence within Queensland state schools will disappear,” he said.

“Principals consult with students, school staff, parents and the P&C when developing or reviewing their school’s student dress code … (where) considerations include affordability, functionality and durability.

A closing down sale is underway at Georgio Clothing. Picture: Shae Beplate.

“The Department of Education has a Standing Offer Arrangement (SOA) for school uniforms and representative sports uniforms and accessories. There are currently 39 suppliers on the SOA with a mix of small, medium and large businesses throughout Queensland.

“Schools are empowered to establish contracts for the provision of school uniforms locally.”

The School Locker and Lowes were approached for comment.

Originally published as Business closures blamed on corporate takeover of Townsville’s uniform market