Owner of Riachuelo closes factory in Fortaleza and fires 1,800 employees

Guararapes, owner of the Riachuelo chain of stores, announced this Tuesday (10) that it will close activities at a manufacturing center in Fortaleza to concentrate its production in Natal, according to a statement to the market.

According to Guararapes, 2,000 employees worked at the factory. Some were invited to go to the operations in Natal or São Paulo, with some accepting and others still not responding. In total, 1,800 were laid off. “Everyone was offered the extension of the health plan for double the prior notice and the amount of half a salary floor. The industrial sewing machines were donated to the seamstresses and the others were given an additional salary,” the company said in a statement.

“The decision is part of the company’s strategic planning, with a focus on optimizing the manufacturing operation to intensify reactivity, efficiency and competitiveness, combined with sustainable growth”, said the company.

The company currently only has factories in the capital of Ceará and Natal, according to information from Guararapes.

Source: CNN Brasil

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