In the past year footwear and textile manufacturer Merchant House International has seen its primary export market dry up as the United States economy went into recession and leading client Kmart went bankrupt.
Management remains optimistic about Hong Kong-based Merchant House's prospects, however, and chief executive Loretta Lee predicts sales will reach US$200 million in the next three to five years.
Australia-listed Merchant House rang up A$63.7 million (about HK$274.45 million) in sales last year, according to the company's annual report.
Merchant House's sales are derived from manufacturing three main products: shoes, textiles and decorations-gifts on the mainland. All products are exported overseas, primarily to the US market.
US retail giant Wal-Mart Stores and footwear trader Meldisco accounted for 60 per cent of Merchant House's orders.
While most people may not be familiar with Meldisco, they are probably aware of its biggest customer Kmart.
Meldisco used to manage the footwear department in 2,114 Kmart stores, which accounted for 98.5 per cent of its net sales in 2000.
