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.
Movitex, a company specialised in textiles and clothing for seniors , and whose main distribution and retail methods are via the Internet, announced that it is to cut about 165 positions from a total workforce of 320 people. Movitex is a former subsidiary of Redcast, which is itself a subsidiary of the French luxury group Kering. Movitex is known for its Daxon brand, designed for senior individuals. The company stated that 'In order to restore profitability, Movitex intends to focus exclusively on profitable activities within its portfolio'. The company has also decided to stop activity on its brand Balsamik at the end of the autumn-winter season in 2016. Movitex was sold in January 2015 by Kering (owner of Redcast) to its management for a symbolic euro. Following this, Movitex employees overwhelmingly responded to the opening of capital, and employees now hold 45% of the share capital. The management feels that the Employment safeguard plan is justified due to the bad economic environment, a depressed textile market that has been declining for seven years and which was weakened by the terrorist attacks in 2015, by way of its relation to tourism and luxury goods in France. Unpredictable weather has also contributed to the crisis, as it is often too mild during the winter and the too cold in spring. Movitex also faces sharp competition from companies such as Primark, that specialises in clothing at low prices. In 2015, Movitex declared a turnover of €90 million in comparison to €163,9 million in 2013.
Eurofound (2016), Movitex, Internal restructuring in France, factsheet number 87561, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/87561.