JUST ONE week after launching its new jersey, Heineken Cup champions Leinster could have to bin the kit after its supplier Canterbury Europe Ltd was placed into administration yesterday in Britain.
Administrator KPMG terminated all of Canterbury’s sponsorship contracts, including its deal with Leinster, which was due to run until June 2012 and is thought to be worth about €250,000 a year to the Heineken Cup holders.
A spokesman for Leinster Rugby described Canterbury’s difficulties as “unfortunate” before adding: “We are going to sit tight and assess our options.”
The administrator laid off 72 of Canterbury’s 86 staff at its base in Stockport, Cheshire, but said the business would continue to trade while it tried to find a new owner. It ran into difficulties following a failed expansion policy.
“All sponsorship contracts in Canterbury Europe Limited have been terminated as a result of the administration, and the affected clubs will rank as unsecured creditors in relation to any amounts they were owed for the remainder of the contract,” a statement from KPMG said.
Ironically, Canterbury’s financial woes coincided with a period of unprecedented demand for Leinster’s kit. The Irish province sold a record 35,000 replica shirts last season, helped by the capture of the Heineken Cup for the first time.
Canterbury also supplied Ireland’s Grand Slam-winning kit last season and the IRFU is believed to be on the list of creditors.
In a statement provided to The Irish Times, the rugby union said: “The IRFU’s equipment contract with Canterbury Clothing comes to an end on July 31st, 2009, beyond that the IRFU has no comment to make on the details of its sponsorship agreement with Canterbury.”
The IRFU recently replaced Canterbury with German sportswear-maker Puma, which is reported to be paying €15 million over eight years to have its kit worn by Brian O’Driscoll and his team-mates.
Canterbury was founded in New Zealand and the European arm is an offshoot of that business. The parent group and other Canterbury companies around the world are not affected by the administration.
The new Leinster jersey went on sale recently in leading sports shops. It is also available from Leinster’s online store at €40 for children and €60 for adults. Leinster’s deal with Canterbury stretches back more than a decade. It comprised a mixture of kit and cash, with Leinster paid bonuses for on-field success.
