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Alain Manoukian to Cut Jobs

The French brand, owned by BCBG Max Azria Group, is to trim 175 jobs.

PARIS — Ailing French ready-to-wear brand Alain Manoukian, owned by Franco-American group BCBG Max Azria, is to cut 175 jobs, a company’s spokeswoman confirmed Friday.

“Following the loss of a major contract in 2009, BCBG SAS France has experienced major financial difficulties in France,” she said.

A restructuring plan and international development spearheaded by Max Azria and implemented by David Jehan, president of the BCBG international division, has enabled the company to reduce losses with the aim of breaking even next year, the company said. The last phase of this restructuring plan took place over the summer, resulting in layoffs.

Arnaud Pichot, general secretary of union Force Ouvrière Drôme-Ardèche, told WWD the job cuts affect employees of Alain Manoukian shops in France, and a logistics site based in Mercurol in the Drôme region.

Pichot said affected employees received a letter this summer, in line with layoff procedures in France. He explained the company has been strongly impacted by the loss of a major contract with French retailer Carrefour.

“We are now concerned that BCBG leaves the site,” explained Pichot, who noted negotiations are now under way to try to save jobs.

Alain Manoukian, founded in 1973, was acquired by BCBG Max Azria Group for $78.5 million in 2005. As reported in July, Guggenheim Partners is set to take control of BCBG Max Azria Group, a company it has funded for a decade, as the fashion house was hitting a critical financial juncture.