The Adolfo Domínguez group has announced the start of negotiations with union representatives to launch an employment regulation file (ERE) for economic, organizational and productive reasons, which will affect some 300 workers in Spain, 30% of its workforce, with a homogeneous impact on its headquarters and commercial network.
As the textile company has communicated to the National Securities Market Commission (CNMV), your staff restructuring includes a plan to return to profitability, as well as a project to adapt to the new digital reality of «retail». The fashion firm has recalled that it has been in losses for a decade with the exception of the 2015-16 financial year, when it returned to black numbers after the sale of extraordinary assets. In the 2019-2020 financial year, the firm accumulated 8.3 million euros in losses.
“The transformation plan is activated after four years of gradual process optimization and operational profitability improvements, but these have not been enough to achieve profit entry. The acceleration of retail towards online sales forces the firm to restructure itself towards new management and sales systems to guarantee the future of the business. One in five sales of the company already comes from the online store, “said the company in the statement.
The group has ensured that this job cuts will be duly communicated to the workers who are affected and their representatives, and will be undertaken “in a responsible, orderly and consensual manner.” “This transformation plan is activated after four years of process optimization and gradual operational profitability improvements, but these have not been enough to achieve profit entry,” they explain from the firm.
The group currently has 348 points of sale in 18 countries. Its turnover in the last financial year (2019/20) was 115 million euros. The company has ensured that it will maintain its network of stores in Spain and will implement specific measures for its optimization and connection with the digital world.
The group will be advised throughout the labor process by the Sagardoy law firm, while the consulting firm Deloitte is its main advisor in the preparation of the technical and financial reports of the plan.