Costs, Cashflow and Closure - the Last French Beret Maker

France boasts some of the most famous fashion houses in the world, but there are few items of clothing more synonymous with the country than the beret. However, the nation’s last surviving factory that produces the item is now facing closure due to financial problems. With cheaper production costs, the iconic hat may in the future be made in Asia. A great example of the impact of emerging markets on the competitiveness of firms in developed economies. Some nice comments too in the video about the type of cash flow problems experienced by small manufacturers.

For students not familiar with the beret, here is a bonus clip - Frank Spencer in Some Mothers Do Ave’Em: