Tuesday, April 7, 2015

1,600 jobs lost at La Halle clothing and André – The World

A magazine La Halle aux clothing Chantepie, a suburb of Rennes, on 7 April.

The direction of the Vivarte group, specializing in apparel, announced Tuesday, 7 April 1600 deleting positions in several of its brands.

When central works councils (CEC) in the stores, the closure of 174 of the 320 stores Halle clothing was announced, being accompanied by 1,500 job cuts. The majority of the posts are in the stores, but the logistics (75) and seat (147) are affected too, told AFP Cheboub Karim, Assistant Secretary CGT group committee. The number of affected employees should be more important in light of part-time jobs, he said.

Thirty-four André stores will also closed, with hundreds of job cuts in the key , according to union sources. According Gérald Gautier, FO union representative of the group, the management announced that 23 stores the additional Halle could be closed for lack of buyers. Jean-Louis Alfred, of the CFDT, who fear job cuts “even more important” , the group is “to the Anglo-Saxon pension fund thank you.”

The group holds a total of sixteen brands of ready-to-wear or shoes, including Naf Naf, Kookai, Caroll, Minelli or Chevignon, and in 4500 outlets, employing over 17 000 employees in France. Weighed down by a huge debt of 2.8 billion euros to which were added loan of € 850 million from shareholders at its acquisition in 2007, just before the financial crisis, Vivarte had to endure for years massive debt unrelated to its business

The challenges have increased with the sluggishness of the clothing market in France, the fierce competition of stores like H & amp;. M, Zara and Primark. Already in 2013, 190 stores were closed. The rise in product line strategy has not worked. “We walked away from our popular regular customers” , says Mr. Cheboub, Assistant Secretary CGT group committee.

Marc Lelandais, former CEO, successfully to convince creditors to give up $ 2.8 billion of debt, whereby the company has grown in October 2014 under the creditors funds control as Alcentra, Babson, GoldenTree and Oaktree. The group has been directed by Richard Simonin.

According to Reuters, sales of Vivarte fell 10.3% during 2013-2014, while operating income was divided and two, to 170 million euros. Halle clothing became loss

Read the review. Vivarte: do not die cured

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