EMCC European Monitoring Centre on Change

Damartex

Company/Organisation:
Damartex

Geographic Location

Country: World
Location of affected unit(s): France, UK, Belgium, Germany

Company

Sector: Retail
Wholesale and retail trade; repair of motor vehicles and motorcycles
47.51 - Retail sale of textiles in specialised stores
Number Employed: 3300

Employment Effects

Announcement Date: 09-06-2020
Planned Job Reductions min: 195
Planned Job Reductions max: 195
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-07-2020
Foreseen End Date: 31-07-2021
Planned Job Creation: 25
Direct Dismissals: 195

Additional Information

The Damartex group has announced a restructuring  that will lead to 195 job cuts.  In total, 159 jobs will be cut in France (and 25 positions created) and 36 in Belgium, the UK and Germany.
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 28 people, will be outsourced. Finally, activities such as product creation and marketing will be shared between Damart and Afibel.

Damartex employs 3,300 people in total.

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