Hugo Boss has decided against the US closure

Hugo Boss has decided against the US closure

German fashion group Hugo Boss has decided not to close its last remaining manufacturing plant in the US, after considerable opposition to the proposal.

A spokesperson told just-style that the plant in Cleveland, Ohio, would stay open after an agreement was reached with the Labor Union.

However, Hugo Boss said it would not be possible to retain all the 300-plus workers there, saying personnel affected by the cuts would receive "generous severance packages".

The company said the new proposals would enable the plant to compete effectively on the global market.

"We are delighted that – together with the trade union and our employees – we have managed to find a way of keeping our Cleveland location open and operating at a more competitive level," said Dr Andreas Stockert, chief operating officer of Hugo Boss.

It follows months of worker and trade union opposition to the proposed closure, which was scheduled for the 28 April.

Hugo Boss had insisted in February there was no economically reasonable alternative to closing the facility, but earlier this month agreed to return the negotiating table with union representatives.

"After a long period during which there seemed no prospect of reaching a consensus, the trade union signaled its willingness to compromise when negotiations resumed in April, finally paving the way for an agreement," Hugo Boss added.