Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
German manufacturer of footwear Ara Shoes has announced plans to close its plant in Șimleu Silvaniei (Salaj County) and to reduce its activity in Valea lui Mihai plant (Bihor County) in spring 2020: 2,050 employees , in production and in administrative positions will be affected. The first stage of the restructuring will consist in the closing of the factory in Salaj, and the second, reducing by 50% the staff of Bihor, from 900 to 450, with attempts to redistribute the employees to other group's brands such as Lloyd and Legero Romania. The company is trying to find redeployment opportunities for the affected employees within its other divisions, including Lloyd and Legero Romania.
According to a company's spokeperson, the reasons behind the closure and the reduction of its activity are skilled workforce shortages and an oversized production compared to the actual sales over last years. The company stated that they will respect all the statutory social protection measures.
The company employs 2,500 people in Romania. Globally, Ara Shoes has a workforce of about 4,000 people across two countries.
Eurofound (2020), Ara Shoes, Closure in Romania, factsheet number 99682, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/99682.