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Hugo Boss union raises doubts on takeover plans
Apr '10
According to a union official, a Californian company's approach to Hugo Boss, to takeover Boss's US plant, is impractical.

JCH International Apparel Inc., San Jose, markets its own men's line, but does not run a manufacturing unit and has always outsourced its requirements, said a union official.

JCH International was formed in January 2010 and its Chief Operating Officer, Isaac Crawford, before joining, headed its predecessor, JCH Unlimited, which was started in 2006.

Bruce Raynor, National President, Workers United, the union representing more than 300 workers at the plant said that, the Hugo Boss plant in Brooklyn produced several hundred thousand men's suits every year.

The discussion on takeover took place in New York, when Crawford met Raynor.

Doubting the possibilities of this takeover to work, Raynor said, “It might not be a very realistic option, but there isn't another plausible plan either. I wish this alternative was more practical, but it is not.”

He continued, “The Company taking over this plant, needs to have an extensive network for selling suits in North America, but the only company which comes to mind is Hugo Boss.”

According to Hugo Boss AG, the decision to close the US unit, on April 27, 2010, was made last year. Operations will then shift to Turkey and other places in Europe. Despite generating money, the US unit was not globally competitive and Hugo Boss faced excess capacity abroad.

The union and the company will resume negotiations, about the latter's decision to shut the unit, on Thursday, April 8, 2010. The decision to resume discussions was taken after the National Labour Relations Board informed that, it had 'plausible cause' to issue a complaint against Hugo Boss, unless both sides settle the union's charges of unfair labour practices.

However, as per a news released on Friday, April 2, 2010, by US representative Dennis Kucinich, said that an unnamed company had bided more than $2 million and it intended on retaining the unit's union and employees.

Kucinich refused to identify the company or comment about the union's objection or JCH's lack of manufacturing experience.

Fibre2Fashion News Desk - India

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