EMCC European Monitoring Centre on Change

Marypaz

Company/Organisation:
Marypaz

Geographic Location

Country: Spain

Company

Sector: Retail
Wholesale and retail trade; repair of motor vehicles and motorcycles
47.72 - Retail sale of footwear and leather goods in specialised stores
Number Employed: 700

Employment Effects

Announcement Date: 18-06-2020
Planned Job Reductions min: 170
Type of Restructuring: Internal restructuring
Employment Effect Start: 15-07-2020
Foreseen End Date: 31-01-2021
Direct Dismissals: 131

Additional Information

Marypaz, one of the largest footwear retail companies in Spain, has announced the closure of 41 of its 125 stores and a collective layoff plan affecting 170 people. The company has also introduced a temporary redundancy plan to reduce working hours of workforce during the limited sales period. This workforce adjustment plan is a consequence of the firm's decision to close 41 stores (having 125 currently) due to the Covid-19 crisis. The company's objective is to guarantee business continuity and to maintain as many employees and stores as possible.

The announcement comes after an insolvency rescue in November 2019.

 

Update 22/07/2020: After negotiations with the responsible unions, the company has agreed to reduce the number of affected workers to 131, which is with 57 positions less than the number of dismissals originally planned. The company will close 33 stores (25% of its establishments). The company will offer a compensation corresponding to 20 days per year worked (with the limit of legal compensation for wrongful dismissal), plus a single payment of €300 for all affected workers. The collective dismissal process will be implemented until January 2021.

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