Gaultier fashion house designs restructure

3rd November 2004, Comments 0 comments

PARIS, Nov 2 (AFP) - The French fashion house Jean Paul Gaultier unveiled restructuring plans Tuesday aimed at bringing the firm to the breakeven point by the end of next year, it said in a statement.

PARIS, Nov 2 (AFP) - The French fashion house Jean Paul Gaultier unveiled restructuring plans Tuesday aimed at bringing the firm to the breakeven point by the end of next year, it said in a statement.

The firm, which had sales last year of EUR 570 million (USD 723 million), said that it had been spared by a crisis in the luxury industry until only recently.

The company said in a statement that it "now has to restructure to remain competitive ... That's why management is working on restructuring plans."

It said the plan included a "social chapter", which usually means jobs are at stake.

Gaultier chairman Donald Potard told AFP the company aimed "to hold onto all its activities starting with haute couture". Some big fashion houses have closed down their haute couture lines in recent years for lack of customers for their bespoke clothes.

The statement said: "This reorganisation should allow the group to breakeven by the end of 2005".

The company, which employs 175 people, posted its first loss since 1991 last year.

French luxury goods group Hermes has had a 35 percent stake in Jean Paul Gaultier since 1999.

© AFP

Subject: French News

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