BURBERRY to CLOSE FACTORY IN UK, SPAIN

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  1. Burberry to cut up to 290 UK jobs

    newsimg.bbc.co.uk/media/images/45217000/jpg/_45217220_17777e9d-dd97-4b4e-9c56-c7c44fc40e95.jpg

    Luxury clothing brand Burberry is to close a sewing plant in Rotherham, South Yorkshire, as part of a shake-up which will cost up to 290 jobs.

    The site in Eastwood, which makes basic outerwear for the label, will shut with the loss of up to 170 jobs.
    Another 120 jobs will go at its only remaining UK plants in Castleford and Keighley, West Yorkshire.

    The company said investment would now be focused on the Castleford factory, where its famous trenchcoats are made.
    It is also closing its Thomas Burberry line in Spain, with the loss of about 250 jobs.

    'Very bad news'

    In 2006 Burberry announced the closure of its factory in the Rhondda Valley in South Wales, which employed 300 people. The Rotherham sewing facility has been owned by Burberry for less than five years.

    Tim Roache, regional officer of the GMB union, said: "This is very bad news for Rotherham.
    "We will want to have a thorough discussion with Burberry on the logic of this rationalisation before we are able to move forward.

    "We have been around the blocks with Burberry before as they sought to move jobs from the UK to China - we want to make sure nothing like that is happening this time."

    The Burberry plant is situated on a roundabout in the Eastwood area of Rotherham - one of the most deprived parts of South Yorkshire - where shocked workers gathered outside the gates on Tuesday.

    Sales fall

    Patricia Turner, 52, who has worked at the site for 35 years, said: "Everyone's so upset. It's just a shock. We did not know."
    Her colleague, Angela Adams, 39, said: "It's a disgrace. I only found out when my friend stopped me as I was walking in the gates.
    "She said 'Have you heard it on the news?' We had no idea.
    "There's nothing else round here. We're devastated."
    Meanwhile, Burberry also announced that its like-for-like sales for the last three months of 2008 fell by 3%.
    Chief executive Angela Ahrendts said its markets "remained challenging and volatile".

    Total sales were £329m, up 30% from the same period of 2007.
    But the company said orders from its stores had been lower than expected, especially in Spain and the US. It predicted in November that its results for the full year would be at the lower end of expectations.

    Article from:
    http://news.bbc.co.uk/1/hi/business/7839200.stm

    More:
    http://www.guardian.co.uk/business/2009/jan/20/burberry-jobs-factory-closure
     
  2. something strange is going on with Burberry. Von Maur just informed me that they really, really had to try to get Burberry clothing for upcoming seasons, and that the company said they would no longer be producing classic nova shirts. Burberry also said they wanted to focus on different segments of the brand?
     
  3. It was announced that 250 have lost their jobs at Burberry...

    Come on ladies, get spending!
     
  4. I read this news yesterday, It seems that the Massive Recession is reflexed even with some of the luxury brands also.

    Very sad news for all those who are going to lose their jobs xx
     
  5. This is really sad news, in the UK the unemployment rate is going to go past 6%, hopefully the market will turn before the year is out.
     
  6. I don't think this has everything to do ith the recession. BUrberry have been doing it for years and their results wern't all that bad even now. It's been in the planning probably.