BALLY TO CUT 250 JOBS, MOVE PRODUCTION
MILAN — In a bid to stem losses and boost efficiency, Bally plans to lay off 250 workers and transfer its production site to the Ticino region of Switzerland, on the Italian border.
About 135 workers will be transferred from Schonenwerd, Switzerland, Bally’s current production site, to Caslano, in Ticino, where Bally will establish a production and design center for leather.
The company said it was working with unions to find jobs for the 250 workers from Schonenwerd and Caslano who would be laid off.
Gerald Mazzalovo, president and chief executive officer of Bally, told WWD that at Caslano Bally would be closer to its Italian subcontractors and suppliers, and have access to more modern facilities. Bally currently subcontracts 85 percent of production.
“Caslano’s close proximity to the most important suppliers will enhance logistics and reduce time to market,” Mazzalovo said, adding that the move would take place in stages over the next six months.
Bally was acquired this year by the American leveraged-buyout fund Texas Pacific Group, which aims to reposition the brand in the luxury segment of the market and restore it to profitability.
Bally put its annual losses at approximately $62.5 million, based on current exchange rates.
TPG is cutting back Bally’s sprawling retail network, trying to reduce costs and attempting to make design, development and production more efficient.
Abel Halpern, managing director of Texas Pacific Group in Europe and chairman of Bally, told WWD earlier this year that TPG planned to focus on reinforcing Bally’s core capabilities in leather footwear and then move to accessories and ready-to-wear.
“Our goal is a legitimate and full lifestyle proposition,” Halpern said.
TPG reportedly paid more than $200 million for Bally; an initial $65 million went to purchase the footwear company from Oerlikon-Buhrle Holding AG. It plans to invest the remainder in the company.