The Douglas beauty and perfume chain will close 136 of its 199 stores in Spain and lay off a maximum of 1,000 employees, the German firm reported in a statement.
The procedure, which has already been notified to the representatives of the workers, will take place despite the good results of the German group, which nevertheless considers that the Spanish business is not profitable after the pandemic.
Douglas hopes that “through this reorganization, the subsidiary will have an opportunity for long-term growth and competitiveness.”
Company sources have confirmed that the negotiation with the workers’ representatives will begin in the second week of March. Likewise, the company maintains that “it approaches this period with the desire to reach the best solution for all parties.”
Douglas, which is the largest beauty group in Europe, had a turnover of 3.1 billion euros last year in the areas of perfumery, decorative cosmetics, skin and hair care, as well as nutritional supplements, health and accessories. However, the Spanish subsidiary of Douglas has generated losses in 11 of its last 12 years, reaching losses of 52.5 million in 2020.
A year ago, the firm announced the closure of 20% of its subsidiaries in Europe, in a decision “motivated by the coronavirus crisis.”
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