LVMH backs rescue plan for Lejaby factory workers

French luxury conglomerate LVMH could come to the rescue of Lejaby’s factory workers in a deal that will see the operation switch from lingerie to leather goods manufacturing.

Sofama, a manufacturer of luxury goods for LVMH, has offered to take over the Lejaby factory and retrain its workers to produce leather goods instead of intimate apparel.

LVMH gave its backing to the plan, promising to source products from the plant for several years. "We are proud today of helping to save jobs," LVMH Chief Executive Bernard Arnault said in a statement.

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The Lejaby business was bought from administrators in January by Alain Prost, the former CEO of Italian lingerie group La Perla.

Prost has promised to invest 7 million euros in the company but is likely to shift manufacturing to the subcontractor Lejaby, in Tunisia.

Lejaby closed its factory in January after filing for insolvency. The closure was fought by the company’s workforce and grabbed headlines during France’s presidential election campaigns, which has been dominated by the issue of rising unemployment.




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