Inditex closes Uterque integrates Massimo Dutti - Inditex takes the first step towards closing Uterqüe: announces internally the process of substantial modification of the firm that will integrate Massimo Dutti.
The giant Inditex announced last September, during the presentation of its semi-annual results, the integration of Uterquë within its other formal firm: Massimo Dutti.
The decision entailed the closure of the entire commercial network, which rises, to 31 October July, to 81 points, but also a new development for its staff, which felt "lost and "in a state of shock", after the unexpected closure. All this even though the group ensured its relocation to other companies.
After the announcement, the group had not taken any step-in relation to this teaching movement. A fact that, however, has changed today.
This Friday, and as learned through union sources, the textile group has announced internally the process of substantial modification of the company absorbed.
Inditex closes Uterque integrates Massimo Dutti
In this sense, a meeting has been held between the unions to determine how the social part of the negotiating table will be composed, which will be formed soon and will be decisive.
Regarding the times, several workers explained to this media that the group informed them that the commercial network would be closed completely, at the latest, next March.
Now, the key lies in how the future of the workers of the teaching will be-whose number is not public and has not agreed to give the group itself.
It should be explained that the design team, as pointed out, at the time, CGT, would move in its entirety to Massimo Dutti. The same would not happen with store staff-specially commissioned and other posts in charge-whose conditions would have to wait to be resolved.
At this point, the important operational decision announced by Inditex –long before Uterqüe's– that it would absorb 1,200 establishments, of which between 250 and 300 were in Spain, gains relevance.
The plan behind the Inditex closes Uterque integrates Massimo Dutti idea
Uterqüe was not part of this adjustment plan, as confirmed at that time by the Galician Intersindical Confederation (CIG), the only union with representation in the teaching in Galicia. "They told us that Uterqüe did not need more closures," all the workers consulted agreed.
Sources close to Inditex denied it and explained that the closure affected all the networks. "Each format has a different commercial network and, therefore, decisions affect them differently," they added.
However, there was never a technical report for Uterqüe, as has been able to verify, while there were for the rest of the chains. In them, Inditex detailed to each of them how the plan would affect them.
Thus, it is in the air to know if Uterqüe workers will have the same conditions for their relocation as those that did receive the templates affected by these removals. Something will be agreed at the negotiating table.
"This has caught us suddenly. Especially for what they offer us, " explained one employee. "They offer us other stores, but they don't respect stalls, nor days, nor conditions," he adds. "Right now, we don't have enough information about our future in 2022. We are lost and in shock, " explained another worker.
Unions comment Inditex closes Uterque integrates Massimo Dutti
Union sources explain that Massimo Dutti is not prepared to absorb this number of workers. His latest moves also attest to this.
Massimo Dutti cut its revenues in 2020 by 37%, to 1,197 million euros, the largest percentage drop of the entire group, followed precisely by Uterqüe (-34.7%).
In this way, only during 2020, the turnover of both formats has been left 743 million. Massimo Dutti bore the brunt, with a revenue drop of 703 million euros.
Today, it is necessary to resort to the first fiscal semester of the group–between February and July– to know the most current situation of both companies.
In this way, it is verified that both firms have increased their sales in this semester interannual. Massimo Dutti has seen them grow by 24%, to 607 million euros, while Uterqüe –always considered the smallest of the group– has generated sales of 48 million, a 55% increase.
Despite the sound of the decision —at least from the outside—, the movement in the firm led by José Luis Rodríguez Moreno was something expected, according to sources close to the group's operations.
In this way, voices close to the company detail that the chain did not know how to define its business model well. This was also agreed by union sources linked to the Galician Intersindical Confederation (CIG), who spoke of a "failed project".
Thus, there are different causes that would explain this absorption, which they describe as" natural " in operational terms. The main one is the cost savings, but also the similarity in its clientele.
A fact that confirmed a source close to the sector: "The 2 formats have been integrated for years; Massimo Dutti supervises everything that Uterqüe does. Those who know about branding in Inditex are, precisely, those of Massimo Dutti; that is why for years they began to manage the teaching that they will now absorb", they pointed out.
# Inditex closes Uterque integrates Massimo Dutti #
