Roberto Cavalli reaches union agreement on mass job cuts
Faced with financial struggles, Roberto Cavalli -- the fashion house taken over in April 2015 by Italian private equity group Clessidra Capital Partners -- has reached a new agreement with unions, following the announcement last month that the brand would cut 200 employees from its 672-strong team.
According to a press release delivered to local media, total redundancies have been reduced to close to 89 employees, from 200. At the brand's Florence site, where protests have increased over the past few weeks, some 50 employees will now leave, compared to 77.
Still confirmed, however, is the closure of the Milan office, which will see all business activities transferred to Osmannoro, the Florentine site, as well as the closure of several boutiques.
Roberto Cavalli's restructuring began last October with the announcement its creative director, Peter Dundas, would depart, and Gian Giacomo Ferraris would take Dundas' place.
An expert in company turnarounds, Ferraris was appointed head of the Florentine label in July 2016, following successful stints at Jil Sander, and then, Versace.
In 2015, Roberto Cavalli reported a 14.2% drop in revenues, to 179.7 million euros, and a gross operating loss of 1.6 million euros.
The luxury brand, which recorded a net loss of 9.7 millions euros in 2014, managed to record a profit of 32,7 millions euros last year, thanks to the capital gained by the sale of its Parisian building on rue Cambon.
However, 2016 is expected to see financial losses again with an estimated turnover between 155 and 160 million euros.
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