New Balance closes its 22 stores in Spain and Portugal and says goodbye to its 250 employees

The New Balance sportswear has informed employees of their 22 establishments in Spain and Portugal to close all its stores between January 10 and 15, and the collective dismissal of the entire staff.

These closures occur after New Balance has liquidated the concession he maintained with Experience Store, which manages all its stores in the Iberian Peninsula.Experience Store, participated by Nacho Puig, Excel of Hawkers, maintained an agreement with New Balance under exclusive regime since the 2011-12 academic year to sell in Spain clothing, footwear and accessories of the American brand.

This decision occurs after this month New Balance won the first judicial pulse to break the agreement with its stores in Spain, which according to New Balance, expires tomorrow, December 31.

New Balance sources point out that the company "is not responsible for the business decisions of Experience Group.6 months ago, without any obligation to communicate with the license contract, New Balance informed Experience Group that the license contract expired on December 31, 2021 and that no new was going to be done.Even when Experience Group decided to open a new store a few months ago, New Balance reminded him again that the license contract expired on December 31 ".

In this way, last Tuesday, Tuesday, December 28, the company delivered a letter to its 250 employees of both the stores and the outlets in which they informed them of the beginning of the collective dismissal hosting in article 51.2 of the Statute of Workers.In the letter urged the workforce to choose a representation of workers from each center to meet with the company and give them the relevant documentation on January 4, through Experience Store.

The sports teaching ensures that "Experience Group has a debt with Alfico, New Balance subsidiary in Spain, which amounts to more than 6 million euros for product supply" ".

In any case, the dismissal and closure of the stores of this show has caught the workers by surprise, at a time when sales were tracing remarkably after the worst months of the pandemic and mainly because in this year 2021Several new establishments had been opened in premium areas, including two in Madrid and one in Bilbao, which were giving excellent results, according to Servimedia.

In addition to the 250 direct jobs that will be eliminated, these closures will also impact on many indirect jobs that serve stores such as logistics, cleaning, administration and safety, among others.

Between disbelief and surprise

One of those affected, Jesse C.García, retail manager in Madrid, expresses the feeling of disbelief and self -surprise and his companions: "Such a close closure is very surprising.That is as suddenly with circumstances as in favor as the current ones and with the brand growing, because people are checked.No one knows the reasons and I hope you explain them ".It also shows its bewilderment because this year stores have been opened "that are profitable" and therefore "shows that no one expected this".

The argument for the commitment to online trade does not convince workers and as Jesse points out, "I don't think about the online channel.They are justifying.In the sector most brands know that the physical store is very important, even more after the time of the pandemic and that it makes no sense to close ".

The 250 affected that will go to unemployment is for this retail manager as hard: "Many people go to the street and have left life here.There are many committed people who know the level of the business, how staff and billing work.That is why they do not understand anything and go to unemployment with mortgages, some will be parents, and many families involved ".

According to the company's forecasts, this year they expected to match billing figures prior to COVID.New Balance invoiced 53.3 million euros in Spain in 2020, not counting the online 'channel, 31% less than the previous year.

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