German clothing firm Hugo Boss AG is to shutter its men's suit plant in Cleveland, Ohio with the loss of around 300 jobs.

The closure, which is due to happen by the end of April, comes after talks broke down with unions over possible wage cuts. The company also claims the plant is not competitive.

Bruce Raynor, president of the Workers United union - which has been locked in talks with Hugo Boss for nearly a year - claims the firm planned to cut workers' wages from about $13.00 per hour to less than $9.00 per hour.

He described the proposals as "flat out offensive, as were its attempts to persuade the State of Ohio to pay them $3m in tax incentives to keep their manufacturing plant in the state."

It is thought the plant's suit production will be moved to facilities of Romania, Bulgaria or Turkey, where costs are lower.