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Kappahl makes cuts at headquarters – 30 employees lose their jobs

The reorganization is complete.

The clothing chain Kappahl is making changes at its headquarters in Mölndal. Around 30 employees will leave the company after a reorganization to cope with competition from e-commerce and new low-price players. This is reported by Göteborgs-Posten.

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This spring, the clothing company announced that 45 positions would be removed from the workplace in Mölndal. Following union negotiations and internal reassignments, it is now clear that around 30 people will lose their jobs.

The union has followed the case and expressed its views on how the work has been handled.

The local union branch and Unionen regionally would have preferred a more predictable process, but we have had an ongoing dialogue with the employer and now hope that the company can look ahead, says Anna-Lena Bertlin Norström, representative at Unionen, to GP.

Adapting to New Purchasing Patterns

Kappahl started in 1953 with affordable clothing in Gothenburg and quickly established itself throughout the country. Today, the chain faces a different market with changing city centers, foreign low-price competitors, and a constantly growing e-commerce sector. The ownership structure has also shifted several times since its inception.

Mellby gård bought out the company from the stock exchange in 2019 and now operates it as a private company, a journey their CEO initially stated would not be easy. To manage the competition, the company has now chosen to change its internal structure.

In order for us to succeed in developing Kappahl Group going forward, we needed to adjust our organization to create a simple, efficient and scalable business, says Johanna Flemström, Communications Manager at Kappahl, to the newspaper.

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