Jil Sander in cost-saving re-structure

Prada owned German fashion label Jil Sander said it is closing its last remaining German production site, a women's wear production facility in Ellerau, Northern Germany, as part of an ongoing restructuring programme. Following an agreement with the works council in Ellerau, all production capacities from the site will be transferred to subcontractors in Italy, where the majority of the company's production is already located, it said.

The company also said it is currently in talks with the works council to restructure its Hamburg-based headquarters. A spokesman for the company said there are currently 235 employees at the Hamburg headquarters, which includes the design division, the atelier, brand management, top management and some other functions. Prada has been struggling to return its Jil Sander and Helmut Lang brands to profitability and posted a full year net loss last year of EUR 62m as losses and devaluations at the two labels came to EUR 73m. Prada acquired Jil Sander in 1999-2000.