Loss of Versace contract forces Swinger International to cut 70 jobs

Italian ready-to-wear manufacturer Swinger International is facing a severe crisis, leading to significant workforce reductions. Based in Bussolengo, near Verona, the company has produced jeans and apparel for major fashion houses since the early 1970s. The situation has recently escalated, with Swinger applying for collective redundancy for 70 of its 148 employees, as reported by local newspaper L’Arena. This move follows an earlier eight-month temporary redundancy procedure implemented for its entire workforce, creating a challenging situation for employees in the run-up to Christmas.

The primary cause of Swinger’s dramatic downturn is the loss of Versace as a key client. According to union sources, the Italian luxury label accounted for approximately 80% of Swinger’s total revenue. The situation worsened dramatically following Prada's formal completion of the Versace acquisition. Union sources indicate that Prada intends to relocate manufacturing of Versace products outside of Europe, effectively severing Swinger's contract.

Contacted for comment, Swinger International declined to make a statement, indicating that the company owners' official reactions would be released in the coming days. The current difficulties are reportedly part of a larger crisis that began earlier in the year. In May, Swinger applied for a redundancy procedure for 171 employees due to a shortfall in production orders. The situation further deteriorated in late summer, despite the resignation of 23 workers.

The current state of affairs represents a major reversal for Swinger, which enjoyed significant growth and success prior to this crisis. Originating as a small artisanal producer of jeans in the 1970s, the company expanded over decades, securing prestigious licenses from global labels like Roberto Cavalli, Vivienne Westwood, Missoni, and Fendi, often targeting younger consumers. Swinger's revenue grew substantially, increasing from nearly €100 million in 2020 to over €175 million in 2023. Additionally, in 2011, Swinger acquired the womenswear brand Genny, which remains part of its portfolio under creative director Sara Cavazza Facchini.

Negotiations concerning the collective redundancy procedure are underway, with the first consultation held at the offices of Confindustria Verona. Italian labor regulations mandate a 45-day window for reaching an agreement between company owners and employee representatives, followed by an additional 30-day mediation period involving the Veneto regional authority. However, L’Arena reports that initial negotiations have been unsuccessful. The Filctem-CGIL union officially refused to sign a deal on Tuesday, December 9. Union representatives stated that their demands, including a safeguarding clause regarding the start date of redundancies, were ignored. Furthermore, the union deemed the conditions offered by the company "absolutely unacceptable," citing a "wholly inadequate resignation bonus." Filctem-CGIL has pledged to assist individual employees upon request.