Lingerie manufacturer Lejaby’s factory is set to close after the former CEO of the Italian group La Perla, Alain Prost, was announced the winner of a bidding war for the company, yesterday, by the commercial court of Lyon.
Approximately 255 employees are affected by the closure of the company’s last production plant in Yssingeaux, with only 195 of 450 employees keeping their jobs.
Prost has already committed 500,000 euros in social support for dismissed employees, with staff being guaranteed to receive 98 percent of their salary over a year period.
The 93 former workers of the Yssingeaux factory announced that they would occupy the factory Wednesday night, with some planning a hunger strike to protest against the relocation of production.
Prost has promised to invest 7 million euros in the company. He joined forces with the subcontractor Lejaby, in Tunisia, where he is expected to take the company’s manufacturing.
The situation of the company in the UK is still uncertain. While a separate legal entity, the brand rights to the UK operation were sold to Prost alongside the main business, leaving the UK staff, who are technically still employed by Palmers, in limbo.
Lejaby UK country manager Kathleen Morgan said: “We don’t know anything at the moment. I can’t really confirm what is going to happen.
“The brand will probably continue in the UK, but I can’t confirm what the situation is with our employees. I am waiting patiently by the phone.”
Italy, Spain and Germany also have offices, which are not included in the purchase.
Buyers wanting information are urged to contact the Lejaby head office in France.