Men’s wear maker Ahlers to cut nearly 800 jobs

GERMANY: Men’s wear maker Ahlers to cut nearly 800 jobs

By just-style.com | 19 March 2009

Men's wear manufacturer Ahlers AG is cutting nearly 800 jobs by the beginning of next month in a bid to generate savings in the high single digit million euro range.

The company, whose retail brands include Otto Kern, Baldessarini (which was spun off from Hugo Boss) and Pierre Cardin, confirmed the cuts as its full year profit slumped to EUR 0.3m (US$0.4m) from EUR9.7m last time.

The company blamed the drop on charges of EUR4.4m relating to its cost-cutting programme and weak fourth quarter sales.

However, the firm posted a 3.2% rise in full year sales to EUR268m, helped by an 11% in revenues generated by its premium brands.

There was also strong demand in Eastern Europe and Western Europe, where sales were up 16% and 2% respectively.

Even so, the group cautioned that while revenues rose 7% in the first three-quarters of the year, they dropped by 7% in the fourth quarter.

Plans to reorganise the business were first revealed last summer, but the company now says it will reduce its headcount by 769 by 1 April 2009.

While most of the layoffs will occur in Poland where it plans to shut two manufacturing plants, 99 positions will also be trimmed in Germany. Some of the production will be moved to Sri Lanka.

The company said it expects to see stable to declining sales in the current financial year.

Sectors: Apparel, Finance, Manufacturing

Companies: Ahlers, Hugo Boss