The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Alfod es Eszak; Eszak-Alfold; Szabolcs-Szatmar-Bereg
Location of affected unit(s)
Kisvárda
Sector
Retail Retail Trade, Except Of Motor Vehicles And Motorcycles Retail Sale Of Other Goods In Specialised Stores 47.79 - Retail sale of second-hand goods in stores
400 jobs Number of planned job losses
Announcement Date
18 March 2020
Employment effect (start)
19 March 2020
Foreseen end date
19 March 2020
Description
Second-hand clothing retail firm Háda announced that it is laying off 400 employees at its Kisvárda site, with immediate effect. The reason is that the COVID-19 epidemic caused a sudden fall in consumer demand, making the firm unable to give any tasks to its employees. Part of the effect of the epidemic is the government decision, in effect from the day before the day of the layoff announcement, that all non-essential retail stores must close every day at 15:00.
There is no word about any prior notification of – or even ongoing consultation with – employee representatives. A local opposition party official was critical that a firm that had received job creation-subsidies from the government in the recent years could fire employees in such an abrupt way.
In Kisvárda, Háda has been one of the largest employers in recent years.
The Háda chain has more than 80 stores nationwide and has been continually expanding its retail operation, until now. The Kisvárda site is the firm’s logistical centre. All clothing obtained abroad goes through the Kisvárda plant before being distributed among the retail stores. Háda sells second-hand clothes imported primarily from Scotland and Northern Ireland.
Eurofound (2020), Háda-1, Internal restructuring in Hungary, factsheet number 100056, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/100056.
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