EMCC European Monitoring Centre on Change

Háda-1

Company/Organisation:
Háda-1

Geographic Location

Country: Hungary
Region: Szabolcs-Szatmar-Bereg; Eszak-Alfold; Alfod es Eszak
Location of affected unit(s): Kisvárda

Company

Sector: Retail
Wholesale and retail trade; repair of motor vehicles and motorcycles
47.79 - Retail sale of second-hand goods in stores
Number Employed: 900

Employment Effects

Announcement Date: 18-03-2020
Planned Job Reductions min: 400
Planned Job Reductions max: 400
Type of Restructuring: Internal restructuring
Employment Effect Start: 19-03-2020
Foreseen End Date: 19-03-2020
Direct Dismissals: 400

Additional Information

Second-hand clothing retail firm Háda announced that it is laying off 400 employees at its Kisvárda site, with immediate effect. The reason is that the COVID-19 epidemic caused a sudden fall in consumer demand, making the firm unable to give any tasks to its employees. Part of the effect of the epidemic is the government decision, in effect from the day before the day of the layoff announcement, that all non-essential retail stores must close every  day at 15:00.

There is no word about any prior notification of – or even ongoing consultation with – employee representatives. A local opposition party official was critical that a firm that had received job creation-subsidies from the government in the recent years could fire employees in such an abrupt way.

In Kisvárda, Háda has been one of the largest employers in recent years.

The Háda chain has more than 80 stores nationwide and has been continually expanding its retail operation, until now. The Kisvárda site is the firm’s logistical centre. All clothing obtained abroad goes through the Kisvárda plant before being distributed among the retail stores. Háda sells second-hand clothes imported primarily from Scotland and Northern Ireland.

Sources: