Global vibes

Primark in trouble

PAKISTAN: United Kingdom-based discount retail group Primark has launched an internal inquiry over allegations illegal immigrants were paid just over half the minimum wage to make fashionable knitwear for one of the company's bestselling ranges.

The inquiry comes after an investigation by the Observer and the BBC revealed that an external factory engaged by Primark may have breached key employment and immigration laws. The workers, caught by an undercover journalist on a hidden camera, were allegedly being paid minimal wages for 12-hour days, seven days a week. A survey last year found Primark Britain's least ethical clothing retailer with marks & Spencer voted the best.
 

Cavalli sells share

ITALY: Luxury fashion designer Roberto Cavalli has announced he will sell a minority stake in his label - believed to be around 20 per cent - to Italian private equity firm Clessidra Capital Partners. According to media reports Cavalli is close to signing a deal with Clessidra Capital Partners, which has links to the Italian Prime Minister Silvio Berlusconi. Cavalli hired Merrill Lynch to look at options for a £1.4 billion ($A3.04 billion) floatation or sale of the fashion label best known for its vibrant prints. However it is believed his plans were halted by the economic downturn.

Purely new offering

UNITED KINGDOM: Trade fair Pure London will launch a new section called Spirit Village for its upcoming February instalment. Featuring promising young names in fashion, the new area is set within the event's designated Spirit zone. Labels to have signed up to appear in the new section include emilyandfin, Jam, Alexander Longe, Amma, LDG and Isis Cashmere. Vivi Ponti, former designer at Roberto Cavalli, will also show her debut collection. The autumn/winter 2009 instalment of the fair will be held at Olympia London from February 8 to 10.

Sacked by Saks

UNITED STATES: A decline in luxury spending has forced United States based retailer Saks to eliminate nine per cent of its entire workforce. At least 1,100 jobs are expected to go in the restructure which will see the company slash its capital expenditures. Saks' same-store sales dropped 20 per cent last month, much worse than the 10 per cent expected by analysts. The company will also eliminate merit-based wage increases in 2009 and suspend future benefit accruals for employees on the pension plan. It expects to save from $50 million ($73 million) to $60 million ($A87 million). Most job cuts will take effect January 30.