H&M to shut a quarter of Spanish stores, lay off 588 workers

Credit: REUTERS/INTS KALNINS

Adds details from the union and context

MADRID, Jan 26 (Reuters) - Swedish fashion retailer H&M HMb.ST announced on Friday a plan to close down more than a quarter of its stores and lay off as many as 588 workers in Spain, home of its rival, Zara ownerInditex ITX.MC, country's CCOO union said in a statement.

The company said it had to carry out the collective layoff for unspecified organizational, productive and economic reasons, CCOO said.

The company has 91 stores and employs 4,000 people in Spain and will close 28, the CCOO said.

Negotiations with the unions are due to start in September, it added.

"We believe the measure is too aggressive and it is possible to look for solutions which doesn't imply job lossses," the union said.

H&M is the world's second largest listed clothing retailer behind Spain-based Zara-owner Inditex and is a fixture in malls and high streets the world over.

H&M did not immediately respond to a request for comment.

(Reporting by Inti Landauro, Corina Pons, Pietro Lombardi, editing by Andrei Khalip)

((Inti.Landauro@thomsonreuters.com;))

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