Tom Tailor

Type
Internal restructuring
Country
Germany
Region
Location of affected unit(s)
Sector
Wholesale / Retail
46 - Wholesale trade
46.1 - Wholesale on a fee or contract basis
46.16 - Activities of agents involved in the wholesale of textiles, clothing, fur, footwear and leather goods
100 jobs
Number of planned job losses
Job loss
Announcement Date
23 February 2016
Employment effect (start)
23 February 2016
Foreseen end date
31 December 2017

Description

Clothing retailer Tom Tailor announced plans to cut 100 jobs by 2017. Furthermore, a total of 80 to 100 stores will be closed and only 30 will be opened in 2016, compared to 132 new openings and 41 closures the previous year. Affected employees are mainly located in administrative and central functions.

According to the management the job cuts are necessary due to internal restructuring with the company trying to save costs including cost on rentals, cargo and logistics. The company is suffering from declining stock prices and profits.

Tom Tailor, headquartered in Hamburg, currently employs 1,000 employees.  

Sources

  • 23 February 2016: Handelsblatt (print)
  • 25 February 2016: Textil Wirtschaft

Citation

Eurofound (2016), Tom Tailor, Internal restructuring in Germany, factsheet number 86594, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/86594.