Former Sara Lee restructures its business in Europe

The former Sara Lee textile division, now known as DB Apparel, announced at its recent international committee meeting that it will cut approximately 900 jobs in Europe between 2006 and 2007, where it employs around 12.000 people. In Spain, the restructuring will affect about 300 employees.
In our country, the textile group, which manufactures lingerie and underwear that it markets under brands such as Unno, Abanderado and Playtex, has plants in Mataró, Castellar del Vallés, Igualada, Olván (Barcelona) and Hostalric (Girona), all in Catalonia and some of them from the former Sans group, in addition to another factory in Zaragoza.
The company's management stated in a press release its intention to "favor, as far as possible, all alternatives in order to limit the number of layoffs."
Changes in the business model
DB Apparel, owned by the investment fund Sun Capital, bases its strategic plan for the coming years on "the transformation of its current business model to adapt to the new challenges of the dynamic market and to safeguard the group's competitiveness."
The new business model includes an investment plan in Research, Development, and Innovation (R&D&I) and in strengthening its brands, the company emphasized. This project will affect some of the group's production plants and distribution centers, "as well as certain management and administrative functions."
The company noted that the textile sector "has undergone profound changes," especially due to the entry into European markets of products from other geographical areas, which has led to a "sharp drop in prices and a decline in markets."

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