EMCC European Monitoring Centre on Change

Damartex

Company/Organisation:
Damartex

Geographic Location

Country: France
Location of affected unit(s): Boulogne-Billancourt, Boulogne-sur-Mer, Thiais, Roubaix, Hem, Villeneuve-d’Ascq

Company

Sector: Retail
Wholesale and retail trade; repair of motor vehicles and motorcycles
47.51 - Retail sale of textiles in specialised stores
Number Employed: 1100

Employment Effects

Announcement Date: 09-06-2020
Planned Job Reductions min: 159
Planned Job Reductions max: 159
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-07-2020
Foreseen End Date: 01-07-2021
Planned Job Creation: 25
Direct Dismissals: 159

Additional Information

The Damartex group has announced a restructuring  that will lead to 195 job cuts, including 159 in France.  
Due to the COVID-19 crisis and store closures, the decline in activity over March, April and May was 25%. Over the end of the year, turnover, which is currently more than €700 million, could fall from €50 to €60 million. Mail order and internet sales (15% of turnover comes from e-commerce) have not compensated for the loss of income due to the closure of stores. The group has therefore decided to cut 195 jobs and to discontinue three brands. Delaby (comfort accessories), Maison du jersey (textiles) and Jours Heureux (food products), which together account for €26 million in turnover and employ a total of around 50 people, will cease trading by 2021. In addition, the mailing of catalogues, which used to employ only 28 people, will be outsourced. Finally, activities such as product creation and marketing will be shared between Damart and Afibel.
In the region Haut-de-France, where Damartex employs 1,100 people, the group plans to cut 62 jobs in Roubaix, 30 in Hem (the logistics site) and 50 in Villeneuve-d'Ascq (Afibel). Not counting the closures of three stores, including the one in Boulogne-sur-Mer.  In total, 159 jobs were lost in France (eventually compensated by 25 new jobs) and 36 in Belgium, the UK and Germany. Damartex employs 3,300 people in total.

Sources: