Hugo Boss To Close Suit Plant

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CLEVELAND, OH (WOIO) - Hugo Boss will close their suit plant on Tiedeman Road this spring.

Earlier this month, workers held a rally outside the plant in an effort to save their jobs.

325 people work at the plant. Shutdown is slated for April.

Wednesday afternoon the company released this statement:

HUGO BOSS will not renew contract with its Cleveland facility

Cleveland, December 30, 2009. The HUGO BOSS group has made the decision not to extend the collective bargaining agreement with the Workers' United Union for the production plant in Cleveland, Ohio after April 2010. The reason for this decision is a lack of full utilization of capacity of this production facility and the fact that it is not globally competitive. The production plant in Cleveland makes only two styles of standard men's suits and does not produce any fashion pieces.

HUGO BOSS has been proactively working with the State of Ohio and the City of Brooklyn to find ways to save this location, although unfortunately these efforts did not yield a solution to provide a satisfactory way to keep this plant operating. In addition, extensive talks with the Union representing the production employees did not bear any viable alternatives to make the production plant competitive, leaving no economic alternative to closing the plant.

HUGO BOSS plans to continue to pay the 300 workers in Cleveland to the end of April 2010 even if production needs diminish prior to that date. Beyond this, management intends to work closely with the Union to negotiate a fair severance package and the opportunity to receive outplacement training for all of our effected production employees.

While the decision to close this facility is not one taken lightly by HUGO BOSS, the company does acknowledge and thank the work force for their dedication during the time this facility has been part of the HUGO BOSS production organization.

Beyond HUGO BOSS Cleveland Inc., the company also employs another 900 people in the United States in stores, showrooms and administrative duties. These jobs are not affected by the closure of this production plant. HUGO BOSS has an offensive growth strategy in the United States that targets creating a whole series of qualified jobs in sales functions.

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