Restructuring events
European Restructuring Monitor (ERM)
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.
Marypaz, one of the largest footwear retail companies in Spain, has announced the closure of 41 of its 125 stores and a collective layoff plan affecting 170 people. The company has also introduced a temporary redundancy plan to reduce working hours of workforce during the limited sales period. This workforce adjustment plan is a consequence of the firm's decision to close 41 stores (having 125 currently) due to the Covid-19 crisis. The company's objective is to guarantee business continuity and to maintain as many employees and stores as possible.
The announcement comes after an insolvency rescue in November 2019.
Update 22/07/2020: After negotiations with the responsible unions, the company has agreed to reduce the number of affected workers to 131, which is with 57 positions less than the number of dismissals originally planned. The company will close 33 stores (25% of its establishments). The company will offer a compensation corresponding to 20 days per year worked (with the limit of legal compensation for wrongful dismissal), plus a single payment of €300 for all affected workers. The collective dismissal process will be implemented until January 2021.
Eurofound (2020), Marypaz, Closure in Spain, factsheet number 101073, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/101073.