Permira Shuts Down US Hugo Boss Plant While Expanding in US
Hugo Boss, an upscale men's apparel retailer controlled by European buyout shop Permira, recently shuttered its last remaining U.S. plant. This isn't a struggling company lopping off a dying branch in an effort to save itself. Instead, it's a successful company trying to save a few bucks by shopping Rust Belt jobs to Eastern Europe. Not the best way to improve private equity's battered image. First, both the plant and publicly-listed Hugo Boss are profitable. Moreover, Permira increased the company's dividend in 2008, and added €750 million in new debt to pay a special dividend.
19 February 2010•2 mins read
