La Perla in talks to avoid layoffs
9 Oct 2019
Things are not looking good at Italy-based lingerie brand La Perla. The company is currently in talks to permit the suspension of 126 jobs according to the Italian Ministry of Economic Development.
“The company and the unions will meet again on Friday to continue discussions and agree on the next steps to quickly find a safeguarding solution,” said the ministry in a statement. The meeting is expected to take place at La Perla's Bologna headquarters.
La Perla had already reached a pre-agreement to suspend the 126 jobs in question, as they work to continue production and keep the remaining jobs at the company on payroll. The pre-agreement appears to have issues that need resolving, and the Ministry of labor will be analyzing the proposal to best identify how La Perla should proceed.
La Perla saw their sales decline in 2017, and as a result decided to cut some stuff, but this led to protests at their Bologna headquarters. This isn't the first time La Perla has found itself in dire financial straits. The company went bankrupt in 2013, which is what led to its eventual purchase by current owner PGM. Last year, La Perla was listed on the Paris Stock Exchange as part of the company's efforts to raise capital.
Joining the Paris Stock Exchange probably wasn't the best move for La Perla has it is typically much harder for companies to do any restructuring once they go public. While this does have advantages of increasing the company's visibility, delivering for shareholders makes nothing easier.
photo: via La Perla Facebook