Despite generating 163 million euros in turnover for the 2019-20 fiscal year, Bogner announced plans to decrease its employee base by doing away with 150 jobs over the next two years.
The skiwear and sportswear company’s reduction plans will affect its administrative head office in Munich and its logistics operations in Heimstetten, Germany. Consultations are already under way, according to the company. Co-chief executive officer Gerrit Schneider said the planned job cuts will be conducted in a fair and respectful manner.
”Bogner is deeply rooted in Munich. We intend to drive Bogner’s global growth from Munich,” she said.
To try to accomplish that, the athletic-minded and lifestyle-friendly company will continue to develop its various brands and target them more toward the luxury sector. Asia and the U.S. will be key areas of focus. Bogner also aims to build on progress in the global online business and is eyeing more retail partners.
The job cuts are part of a performance program the Germany-based company mapped out Thursday. That initiative to develop an improved infrastructure was in the works with the management consultant company EY before the COVID-19 pandemic took hold. Now the urgency to implement it has increased, according to co-ceo Heinz Hackl.
Hackl and Schneider have only had their shared ceo role for a few months. They took over those responsibilities from Andreas Baumgartner at the end of March. Their predecessor stepped aside after serving as ceo since November of 2017. Baumgartner remains with the company as an adviser and is involved with creating current and future collections, a Bogner spokeswoman said.
Bogner’s freestanding store in New York City’s Soho neighborhood was among the retailers that were heavily looted a few months ago.
Despite having a “very solid” business pre-COVID-19 and having taken “resolute countermeasures after responding swiftly and flexibly to the lockdown,“ Bogner is seeking economic support.
The conglomerate Willy Bogner GmbH & Co. KGaA is said to be closing in on a financing package that will include a syndicated loan and state subsidies from the LfA Förderbank Bayern to cover fallout from the coronavirus crisis. Schneider said the planned forecasting should secure Bogner’s financial stability for the next three years and allow for future investments. “We are using this momentum to shape the Bogner of tomorrow,” Schneider said.
For the most recent fiscal year, earnings before taxes at Bogner tallied 2.6 million euros, compared with 300,000 euros for the fiscal year 2017-18.
At the end of last year, Willy Bogner, whose family started the skiwear company in 1932, announced a succession plan. Focusing more on fashion collections has been singled out as one of the ways the company is trying to get back on track. In addition to the signature label, Willy Bogner GmbH & Co. KGaA has the Sonia Bogner label and the Fire + Ice brand. Sonia Bogner was named for Bogner’s model and designer wife, who died in 2017.