Adolfo Domínguez Delays Payments Due to Insufficient Cash Flow
In a bid to tackle financial difficulties, Spanish fashion retailer Adolfo Domínguez has made several significant decisions. The company's committee has accepted the company's plan to delay bonus payments to its workers, with employees receiving half now and the remaining half in February. This move aims to prevent the company from filing for a collective dismissal (ERE).
The company's sales between January and August amounted to 72 million euros, a decrease from 78.58 million euros in the same period the previous year. The first half of the year closed with losses of 8.79 million euros, double the same period last year. These losses and the decline in sales have prompted the company to focus its restructuring plan primarily on internationalization.
Adolfo Domínguez, with an average workforce of 2,300 employees, currently operates a network of 710 stores, with 225 located outside Spain. The chairwoman and CEO of Adolfo Domínguez, responsible for matters related to the reorganization program, is Adriana Domínguez, who was re-elected CEO in July 2025.
In an effort to address liquidity issues, Adolfo Domínguez has decided to stop presenting at Cibeles to invest in opening stores abroad. The company's decision to delay the bonus payment and its focus on international expansion are part of a broader strategy to secure the company's future and maintain its position in the competitive fashion industry.
As Adolfo Domínguez navigates these challenges, it remains committed to its employees and is working diligently to ensure a stable and prosperous future for the company.
Read also:
- Shaping India's Economic Progression: Readying the Financial System for Tomorrow
- Two farmers in Zambia take legal action against two firms with Chinese connections, alleging an ecological disaster caused by their operations.
- Deepening EU-India relations despite apprehensions regarding Moscow connections
- Ongoing Transition Towards Cleanliness
