German clothing maker Hugo Boss AG says it will close a plant in Cleveland that makes men's suits, but pay the 300 workers there through the end of April.
The company, based in Metzingen, and famed for its stylish fashion, said in a statement released Wednesday that the decision was made because the plant was under capacity and "the fact that it is not globally competitive." Hugo Boss makes two lines of men's suits there and no other fashion pieces.
As a result, it will not extend its collective bargaining agreement with the Workers' United union and close the plant after April.
Beyond Cleveland, Hugo Boss employs some 900 people in the U.S. in its stores and showrooms and administrative positions.
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