Delvaux lays off employees in Belgium. That’s because the brand plans to re-organize its production chain and is getting ready to transfer part of its operations to France. This has caused the loss of 26 jobs in Belgium, where the brand has 155 workers. But other cuts could be made to the retail segment. Delvaux lost about 40% of its revenue from Belgian activities in 2020 (38.1 million euro).
Delvaux lays off employees in Belgium
Even an historic luxury brands as Delvaux has taken a hit lately. The luxury leather goods’ manufacturer mainly produces its goods in France in two locations: one in Avoudrey (near Besançon) and the second in Bourg-Argental (south of Lyon). That being said, quality control for both leather and finished products takes place in Belgium, in Etterbeek. Delvaux seems to have decided to simplify the process by moving this activity on site, along with the distribution center of its goods. Simply put, the leather will go directly to France, where the finished product will then be shipped. This choice will cause 26 layoffs in Belgium, while administrative and creative activities will remain on site, including the creation of prototypes and tailored products.
According to Nieuwsblad, the number of employees currently working in the brand’s stores may also be cut from 6 stores in Belgium. The reason behind the difficult choice is the loss of 40% of the revenue in Belgium, compared to 2019. Delvaux currently has 45 stores and 624 employees, 155 of which are located in Belgium. The luxury brand’s ownership is 80% of Fung Brands. The Schwennicke family, which had previously acquired the brand from the Delvaux family in 1933, only owns 20% today.
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