What was buried by Ecco in Martin after 30 years
14. Apr 2025 at 23:52
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More than six hundred people lose their jobs.
The Danish Ecco shoe manufacturer will close its factory in Martin after thirty years. He will lose the job about 650 employees.
« When assessing our model of six global production plants, we had to make a demanding decision to close our plant in Martin, » said Petr Milan, CEO of ECCO Slovakia.
Management prepares compensatory packages for employees.
The company does not have economic results published last year, but it is clear from the annual report for 2023 that its business was influenced by rising energy prices and lower order volume.
Originally, the factory in Martin was supposed to produce two million pairs of shoes, but the orders were in 2023 a quarter lower. The leadership tried savewhere you can. Already at that time it gradually began to release and did not replace people who retired early retirement.
The fact that Martin’s factory ends is more or less expected. In home Denmark, Ecco is one of the moral renegades and faces a boycott of people.
A sharp fall into the loss
In March this year, the parent company Ecco published economic results for 2024. Danish media They commented By becoming a prosperous money machine, the company has become in red numbers that necessarily need to cut costs.
Ecco last year ended in a loss of 280 million Danish crowns (37.5 million euros). A year earlier, the company earned more than EUR 47 million.
The parent company has declined sales in all global markets on which it operates. The North American market fell mostly by 20 percent and ten percent in Asia.
The reasons can only be speculated. According to the Danish media, Ecco has not communicated with journalists for a long time and has commented financial results in the annual report by being « far from satisfactory » and « were significantly influenced by one -off costs to strengthen the company’s main activity ». What was meant was no longer the leadership.
Ecco is not one of the luxury brands of shoes where customers would not solve the price, but their shoes are not even the cheapest pieces. In the last two years, the upper -class standard is problematic for many fashion brands because people have started saving on clothes and shoes. Similar financial problems have brands such as Nike, Adidas, but also more luxurious brandy such as Burberry and Kering (Gucci).
Personnel purges
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