German luxury fashion house Hugo Boss has announced its plans to close its leather goods factory in Scandicci, Italy and relocate its operations elsewhere. This decision has sparked a strike from the factory’s artisans, backed by three Italian trade unions who are calling for industrial action. The closure of the factory will result in the loss of the entire workforce, which is highly skilled in producing leather goods.
Hugo Boss intends to shift the development of prototypes and product samples for its women’s leather goods and footwear collections to Asia and Portugal. However, the Italian trade unions view this decision as a downgrade in product quality and a shift away from manufacturing in Italy. They are determined to continue their efforts until Hugo Boss reverses its decision.
This move by Hugo Boss is drawing attention because many luxury fashion labels are currently investing in Italy, particularly in Tuscany. Scandicci is a renowned hub for leather goods production and is home to major brands like Gucci, Prada, Christian Dior, and Burberry. The mayor of Scandicci has expressed disappointment in Hugo Boss’s decision, emphasizing the town’s significance as a world-class center for leather goods.
Outside the factory, the striking employees have displayed banners with slogans that reference Hugo Boss’s recent ad campaign and highlight the financial loss they will experience. This decision may have an impact on Hugo Boss’s reputation, especially among the Gen Z consumer group that values social and ethical engagement from brands.
Despite the closure of the factory, Hugo Boss’s financial performance has remained strong, indicating the company’s resilience in the market. Additionally, the fashion house is currently preparing for a major event in Dubai.
When approached for a statement, Hugo Boss did not provide a response. However, the trade unions have organized a video-conference meeting with Hugo Boss’s management to discuss the situation and find a resolution.
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