The fashion retailer C&A Europa is planning to close its subsidiary Canda International.
C&A Europe announced on Tuesday that 113 employees were affected by the closure of Canda International. Canda International is a coordinating entity that places formal wear orders with manufacturing facilities.
The operations of Canda International will continue for the time being, but the management has already submitted the closure plans to its social partners, the statement said. The reason for this is the slump in sales in the formal wear sector, which was exacerbated by the trend towards casual wear caused by the pandemic.
“Considering a possible closure is never easy. We will work closely with our social partners and shape the process together with them, with the utmost respect for the employees potentially affected,” said Giny Boer, Managing Director of C&A Europe.
Even if the C&A Europe subsidiary closes, there will still be formal wear in the range – albeit not in the quantity as before, a spokeswoman told FashionUnited. How exactly the work of the company will be replaced, she could not say yet.
It was not until the beginning of November that it became known that C&A wanted to make itself leaner in Europe and that this would result in possible job cuts. Certain departments should work together more centrally.
Read more: C&A announces job cuts in Europe
C&A relies on omnichannel strategy
Even if the closure plans represent a major change due to the long tradition of Canda International – founded in 1921 – C&A will continue to expand its position as an omnichannel retailer, according to the announcement.
In 2021, online sales increased by 54 percent compared to the previous year. In the next few years, this area is expected to account for half of total sales, Boer said in January. Although stationary retail is “the cornerstone” of C&A’s omnichannel approach and the company has just modernized 400 branches, 13 branches in Germany are expected to close this year.
“The change retail is facing reinforces the need for us to change as well,” Boer said on Tuesday. “As we advance our online business, we remain firmly convinced of the relevance and importance of our in-store business.”
C&A operates almost 1,400 branches in 18 European countries and employs around 23,000 people in Europe.