FRANCE: Agreement reached on La Redoute redundancy deal
Most of the staff unions at Kering-owned French mail order firm La Redoute have now signed a redundancy agreement, which means the company can go ahead and activate a restructuring plan
The agreement, signed yesterday evening (24 March), comes after unions last week refused to ink the deal, placing the company's future in doubt after management threatened to file for bankruptcy.
"This agreement is an important stage in ensuring the future of La Redoute and pursuing its transformation, based on an ambitious business plan, modern logistics provision and a solid internet platform," the company said in a statement.
The deal will allow the sale of La Redoute to its senior managers to go ahead and activate a restructuring plan. As part of a strategy to return to growth in 2016, 1,350 jobs are to be axed over four years.
Kering is contributing EUR200m (US$276.2m) to a severance payments scheme and a further EUR315m towards restructuring measures and operating costs.
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