Hugo Boss sews up deal to close suburban Cleveland plant — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Hugo Boss sews up deal to close suburban Cleveland plant

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German high-end clothing maker Hugo Boss has decided to close its factory in suburban Cleveland, even though the plant is profitable. Hugo Boss joins a decades-long exodus of textile and clothing manufacturers that have left the United States in favor of countries where they can pay workers less.

The Cleveland plant’s employees make an average of about $13 per hour.

But Hugo Boss isn’t heading for Asia or Latin America, the usual destinations for offshoring textile work. No, the work will be done in Eastern Europe, where wages are sometimes even lower.

The company has a factory in Turkey and contract workers in Bulgaria and Romania.

COO Andreas Stockert claims the Ohio plant is under capacity and his responsibilities to stockholders demand the move to Eastern Europe.

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