Italy’s Calzedonia closes its factory in Arad

Calzedonia Group supposedly made this decision because of the chronic lack of workforce.

The Italian company, which produced bathing suits, underwear and stockings under such brand names as Intimissimi, Tezenis and Falconieri, was among the five biggest textile players in Romania.

“Since the existence of the company, this is the first production unit to be closed. The reason behind it was that it was hard to find people who wanted to work in a textile factory,” the representatives of Calzedonia Group announced.

Unlike other great fashion brands (H&M, Zara, Inditex), Calzedonia fabricates its products in its own factories. Founded in 1987 in Verona, the group appeared on the Romanian market at the end of the ‘90s. Its local subsidiary, the Aries Textile ltd. in Arad, which worked mainly for export, continuously made it on the list of the 500 biggest exporters.

In 2019, the agency had 432 employees; besides record income of RON 242 million, it made a profit of RON 14.5 million. Last year, the company nose-dived, with workers reduced to 164 and income falling to RON 164 million.

Though Calzedonia justifies the closing with the lack of workforce, this is probably only a partial truth. In the last few years, more and more factories in the fashion industry have closed because of rising wages — it was simply not profitable anymore to employ people in Romania. Calzedonia also has factories in Ethiopia, Sri Lanka, Bosnia and Herzegovina, and Serbia where the production costs are probably much lower than in our country.

The Italian company is a significant player in the global market. Its products can be bought at nearly 1,800 stores in 57 countries, and it has 24 factories. At the end of last year, it had 38,000 employees and its revenue was EUR 2 billion.

Featured photo: Palladium 

Author: Blanka Székely