SPAIN: Burberry production return unlikely - union
Burberry is unlikely to make any make any future collections in Spain following its decision to close its Barcelona factory in move that will see 300 workers leave the site at a reported cost of GBP60m (US$92.2m), a trade union official told just-style on Wednesday.
"They have abandoned their manufacturing operations for good," said the official belonging to main local union UGT, adding that the firm does not believe Spain warrants a market-specific line, which it decided to make under the Burberry Spain division during the country’s economic boom.
He added 70% of the factories’ workers will leave the site over the summer after the firm struck a redundancy deal with unions. The factory will be officially closed next March he said.
The official would not comment on reports that Burberry has already put the factory up for sale.
Spokespeople for Burberry were not available to comment when contacted by just-style.
Under the redundancy deal, 289 workers will get a payout equivalent to 60 days salary per year worked with a maximum of EUR200,000 while the rest will get an early retirement package.
Burberry, which has a strong brand presence in Spain, will continue operating in the country via its Burberry Retail unit which sells much of its apparel at largest department-store chain El Corte Ingles corners and at Burberry outlets.
The Barcelona closure was necessary after sales plunged last year during the country’s deep recession. After launching its last Spanish autumn/winter collection all future collections will be international, in common with other markets.
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