Riachuelo Closes Factory and Announces Layoff of 2,000 Employees

Grupo Guararapes, the Parent Company of Riachuelo Stores in Fortaleza, Closed Its Operations with the Dismissal of Approximately 2,000 Employees, Who Are Now Seeking Reemployment in the Market.

The Guararapes Group, which controls the Riachuelo stores in Fortaleza, carried out the dismissal of approximately 2,000 employees from Guararapes Confecções this Tuesday (10), due to the closure of the company’s operations in Fortaleza, Ceará. The group claims it will centralize production in Natal, Rio Grande do Norte, but data shows that the dismissed employees are unlikely to find reemployment quickly. The number represents 60% of the affected workforce.

Company States That Those Affected in Fortaleza Will Receive Assistance

According to the Guararapes Group, the decision is part of the company’s strategic planning, which aims to optimize manufacturing operations to enhance efficiency, diversification, and competitiveness of products. The group further affirms that the company’s integrated business model remains unchanged, preserving the Brazilian supply chain.

The Riachuelo controller also stated that all affected dismissed employees from the company’s closure in Fortaleza will receive assistance and an extra package, such as support during this period.

According to the company, in a statement, all were offered an extension of their health plan for double the notice period and half of the minimum wage. The industrial sewing machines were donated to seamstresses, and other employees were offered an additional one month’s salary.

Daniel Gomes, president of the Sindicato das Indústrias de Confecção de Roupas no Estado do Ceará (SindConfecções CE), expects that the remaining 40% will be reabsorbed soon, mainly professionals skilled in operating special machines. The executive highlights that the others may take a bit longer to find reemployment, especially in simpler activities like cleaning.

Union Will Mobilize After Dismissals Made by the Guararapes Group

According to Gomes, the Union will seek companies that need labor so that the employees dismissed by Riachuelo’s parent company can be reabsorbed. As they were also provided with sewing machines, the Union hopes that the remainder will start businesses and produce for partner brands.

The union president also laments the closure of the company’s operations and points out the company’s strategy, stating that this is a significant loss for the sector, given that it is a very large company with many employees who lost their jobs. The company’s strategy was to outsource production while remaining focused on the stores. The Guararapes Group has always succeeded in Fortaleza and produced well, but is choosing to close partnerships.

When contacted, Salmito Filho, Secretary of Economic Development for the State, limited his comments on the matter. In a statement, the manager expressed that it is very sad when a company closes, as it also closes economic and social opportunities for the community, as happened in Fortaleza.

Salmito states that the State Government is committed to supporting companies in attracting even more employees, providing the best possible business environment. The secretary did not go into detail about the concrete measures that will be taken to mitigate the impact of the Guararapes Group’s closure.

Voice of Employees After Dismissal

Although the conversation arose months prior, which somewhat prepared the employees, some held on to hopes of continuing to earn for their families for some time. This includes 49-year-old seamstress Rosângela Maciel, who dedicated 13 years of her life to the company.

According to the former employee, there was still a hint of hope, but now she feels lost, as it hasn’t quite “sunk in” yet. As a mother of three children aged 19, 25, and 29, Rosângela becomes even more emotional when thinking of her fellow colleagues who are mothers with younger children, as well as her coworkers who relied on their jobs to pay for rent.