Aubade restructuring measurements

Due to sales drop at Aubade, the lingerie company is taking restructuring measurements. Aubade, a subsidiary of Calida Holding AG has submitted to its social partners a corresponding project for discussion. This includes further flexibility in the business model and simplification of the procurement structures.

The weakening sales of luxury lingerie require a determined reduction of overcapacities. Significantly declining sales in France, Aubade's main market, as well as the important export markets are the consequence.

The plan foresees centralising technical development and the pre-production working processes of Aubade in Paris and includes the reduction of 104 jobs at the location in St. Savin, in south-western France. Cutting to size and the production of samples is to be outsourced. The St. Savin operation will thus become a pure logistical platform with 28 workplaces.

In addition, the development of sales at Aubade will mean that in the consolidated accounts of the parent company, the Swiss stock listed Calida Group, which, impairment will have to be recorded on the intangible assets, which were booked when Aubade Paris SAS was acquired. This non-recurring, extraordinary charge consisting of the impairment and restructuring costs will reduce this year's result of the Calida Group by approximately CHF 59 million.

With the measures foreseen for Aubade, the aim is to form the basis for a sustainable, successful further development of the brand partnership of Calida and Aubade. The Calida Group consists of the Calida and Aubade brands and employs 1300 people. Group sales in 2008 were at approximately CHF 230 million.

Image: Aubade