Business · Companies · 13 hrs ago
Spanish footwear brand Munich closes stores and cuts 45 jobs amid losses
Spanish footwear company Munich is closing stores and cutting costs as it faces losses in its retail business.
The family-run brand, based in Capellades near Barcelona, was founded in 1939 and is known for the X logo on its shoes.
It expanded from sports footwear into urban fashion and grew to more than 400 employees and nearly 60 stores.
Its rapid growth left the company with €20 million in net debt, while it also needed to focus more on whether its business was profitable.
This summer, Munich closed around 15 stores and agreed with unions to cut 45 jobs.
The company has also refinanced its debt and postponed repayment of €18 million, according to the stated terms.
Munich hopes these changes will help it recover as the Spanish footwear industry faces wider difficulties.
Spanish footwear company Munich closed part of its store network and agreed to a job-cutting plan affecting 45 people.
The company took the measures as it faced losses in its retail outlets.
It also refinanced its debt with banks.
The closures included about 15 stores, including those at airports and two other outlets considered unprofitable.
- Who
- Munich, a Spanish footwear company.
- What
- It closed part of its store network and agreed to a job-cutting plan affecting 45 people. It also refinanced its debt.
- When
- The measures were taken during the summer; the debt refinancing was signed in mid-September.
- Where
- Spain. Munich is based in Capellades, Barcelona.
- Why
- The company was facing losses in its retail network and aimed to improve profitability.
This story does not have two clearly opposing sides.
Munich closed part of its store network and agreed with unions on a job-cutting plan affecting 45 people.
After applying the job-cutting plan and closing about 15 stores, Munich signed a debt refinancing agreement with banks.
- Jobs affected
- 45
- Stores closed
- About 15
- Debt refinanced
- The company signed an agreement with banks in mid-September
- Company headquarters
- Capellades, Barcelona
- Founded
- 1939
What people are saying
It is the typical company that grows exponentially and keeps adding things to its backpack until it becomes too heavy. There came a point when it was not just sales that had to be considered, but also profitability.