Upmarket fashion firm Mulberry is to cut its workforce after demand for its luxury products was hammered by coronavirus.
The UK business, famed for its handbags, said it has launched a consultation on plans to reduce its global workforce of around 1,500 staff by 25 per cent.
Mulberry said the majority of its stores have remained closed since it first shut sites in March at the start of the lockdown.
It said it has recently reopened some sites in China, South Korea, Europe and Canada, and will reopen some UK stores on June 15.
However, the retailer stated its digital sales had been “good” during the lockdown, but “cannot fully offset the decrease in demand experienced from store closures”.
It said it expects social distancing measures, lower footfall and fewer tourists to continue to hit revenues, with a “gradual” recovery in overall sales.
Chief executive Thierry Andretta said: “We reacted swiftly to manage the impact of Covid-19 and continue to execute a well-developed plan to manage capital, reduce costs and maintain a robust liquidity position.
“Launching a consultation process has been an incredibly difficult decision for us to make but it is necessary for us to respond to these challenging market conditions, protect the maximum number of jobs possible and safeguard the future of the business.
“We remain confident in the strength of the Mulberry brand and our strategy over the long term.”
