By
Europa Press
Translated by
Barbara Santamaria
Published
Sep 15, 2016
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Spain’s Blanco announces major restructuring

By
Europa Press
Translated by
Barbara Santamaria
Published
Sep 15, 2016

Spanish fashion retail chain Blanco on Wednesday told employee representatives it plans to launch a redundancy scheme that could affect a significant portion of its workforce. The company said a 30-day consultation period will start on October 30.


Blanco


If approved, the layoff plan will become the third collective redundancy led by the company in the last few years, totalling 900 job losses.

The fashion brand, owned by a fund managed by a Dubai-based investment bank since July this year, axed 189 jobs last year. They join 711 other losses in 2013, when Blanco filed for bankruptcy protection.

According to the womenswear label, the restructuring process is needed to ensure profitability and the company’s long-term survival.

Despite turnaround efforts, Blanco has struggled to improve its business and increase profitability, leading to a situation it now describes as “unsustainable”.

Among other measures, the company said it will significantly reduce the size of its organisation and lead a cost-cutting strategy across all departments.

Before moving forward with the planned redundancies, Blanco plans to reach an agreement with as many workers as possible. The label said it will face the process with “the utmost respect to all those affected” as it wishes to achieve a consensual solution that gives workers the best conditions possible.

Blanco has a presence in over 23 countries and operates dedicated online stores for Spain, France and Portugal. The company was sold by Fawaz Al Hokair in June this year for $93 million.

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