HUGO BOSS closes factory in U.S. but unlikely to relocate production in Eastern Europe

Just before the Christmas holidays, HUGO BOSS AG have announced the closure of the mens suit factory in Cleveland, U.S.A. and will pay the 300 employees only until end of April 2010. Rumours have indicated early January that the factory might be relocated to Eastern Europe, Romania being the most tipped country. The information was also circulated on banners at the demonstration held by workers at the end of 2009.

HUGO BOSS already produces in lohn in Romania at a major factory in Miercurea Ciuc, a small town in the center of the country. Due to the unfolding international crisis, it is highly unlikely that HUGO BOSS  purchases the factory, owned by Romanian millionaire Joseph Seroussi who owns several other factories. Should HUGO BOSS decide to relocate the production from the US factory, the best candidate would be Turkey or Morocco with half the production costs of Romania.