Jil Sander enters restructuring phase

Rodolfo Paglialunga, the newly appointed creative director at Jil Sander who took over the reins this

April, is caught in the middle of a internal restructuring phase.

After reporting a loss of 14.6 million euros for the financial year that ended 30 November 2013, the Jil Sander Group is currently working with unions in Milan to dismiss approximately 50 employees. This amount is more than double the amount of loss reported for the same time period in 2012, which was 4.7 million euros.

The excessive loss is attributed to “increased costs of the development of the collection in the previous years,” according to Chief Executive Officer Alessandro Cremonesi, who revealed to WWD that group is currently “negotiating” with unions to lay off 50 workers.

He stresses that none of the employees for the labels design, commercial or development offices are at risk of losing their jobs, and that the timing of the lay off it also under discussion. The label's goal is to re-balance its “economic and financial management” and to turnaround the group by the end of 2015.

Nevertheless, despite the label's internal restructuring phase, Cremonesi remains “very confident” with the future road for Jil Sander under the creative direction of Paglialunga.

“We are very happy with the evolution of the label and convinced his work and his design development will be very positive,” said Cremonesi. Paglialunga's first collection for Jil Sander is set to debut during Milan's fashion week.