MILAN — Jil Sander is in the midst of a restructuring, filing away 2013 with a heavier loss compared with the previous year and working with unions here to let go about 50 employees.
This story first appeared in the July 21, 2014 issue of WWD. Subscribe Today.
Based in Milan, the Jil Sander Group reported a loss of 14.6 million euros, or $19.2 million, in the 12 months ended Nov. 30, 2013. This compares with 4.7 million euros, or $6 million, in the same period in 2012, according to the annual financial report deposited at the Chamber of Commerce here. Revenues totaled 102.5 million euros, or $135.3 million, down 2 percent compared with the previous year.
Chief executive officer Alessandro Cremonesi told WWD the performance was to be attributed to “increased costs of the development of the collections in the previous years.” He said the company is “negotiating” with unions to shed 50 employees. He specified that these individuals are not part of the design, commercial or development offices, and that the timing of the operation is being discussed. At the end of November, the group counted 359 employees.
However, Cremonesi said he was “very confident” in the path of the brand under the creative direction of former Vionnet designer Rodolfo Paglialunga, who was tapped in April. His first collection will bow for spring in Milan during fashion week. “We are very happy with the evolution of the label and convinced his work and his design development will be very positive,” said Cremonesi.
The financial report stated that the company has embarked on a thorough “operation of rationalization,” with the goal to “entirely rebalance its economic and financial management.” The turnaround is “reasonably” expected to be completed by the end of 2015.
As reported in April, Cremonesi said priorities include the development of the brand’s accessories category and of its retail network.
In October, for personal reasons, Jil Sander stepped down from the company she founded in 1968. She had returned for the third time to her namesake brand in February 2012, after Raf Simons’ seven-year tenure.