In the wake of a sharp drop in sales as a result of the Covid-19 pandemic, the German clothing supplier Bugatti announced that almost 100 of the 349 jobs at its headquarters in Herford will be axed. “All areas and hierarchical levels” are affected, it said in a statement. Current market conditions make “structural changes indispensable,” it added. Bugatti pledged that job cuts will be as socially responsible as possible.
For the current fiscal year, the company expects a drop in sales of 20 to 25 percent. And the decline is forecast to continue next year. “Due to the fact that retail is struggling with considerable surplus goods, we are also expecting sales losses in 2021,” Bugatti explained.
But, the shoe business is weathering the crisis better. Bugatti footwear’s licensee, AstorMueller Group, which also holds the license for Daniel Hechter’s shoe line, is seeing a recovery of its activity. For both brands, the Swiss footwear company is expecting a decline in sales of “less than 20 percent” for the current year, but orders for the spring-summer 2021 collections have turned out surprisingly positive, according to a statement.
In the men’s segment, Bugatti’s city shoes are under pressure, but hybrid types and the denim/casual range could almost offset the decline. The situation is also very encouraging for Bugatti’s women’s shoes, the company said. AstorMueller will open a new B2B store in the second half of 2020. The aim is to make the purchasing process faster and more user friendly as well as accessible around the clock.