Mayoral shuts down Hug&Clau after revenue slump and restructuring
The brand was founded by Carolina and Sancho García with a bohemian, laid-back positioning, built on an aspirational narrative and a sense of community. Its initial network was concentrated in Madrid before expanding across Spain.
The acquisition of Hug&Clau was carried out through Indumenta Pueri, the corporate vehicle of the Mayoral Group, marking one of the most significant moves in its strategy to diversify beyond children's fashion. Following the purchase, the company outlined a growth plan for the brand, including a roadmap for new store openings over the medium term.
Today, the situation is the opposite: total liquidation and retreat. On its e-commerce site, Hug&Clau advertises 50% discounts under the banner of a "total liquidation due to closure," while the group prepares to shut down the brand and clear remaining stock.
The farewell has also become visible in physical stores, with liquidation campaigns and scheduled shutterings—some outlets in Málaga, for example, have already announced closing dates, according to Diario Sur. The company has not yet disclosed the full timeline for winding down its store network or the final scope of closures by market.
Meanwhile, Mayoral frames the decision as part of a conceptual shift. The company claims it is developing a new women's brand with a different style and approach, asserting that the transition should not involve workforce cuts, as reported by the Andalusian newspaper.
Signs of restructuring had already emerged after the acquisition. In 2024, Mayoral overhauled Hug&Clau's team, and the co-founder stepped away from the project—a move that signaled a turning point in the brand's management within the group. Until now, Hug&Clau had operated with a network of more than 20 stores across Spain.
The closure follows an internal reorganization aimed at integrating functions from Mayoral's newer brands to cut costs and improve profitability. In September 2025, Modaes reported that areas such as logistics and e-commerce for Hug&Clau and Boston were being folded into the group's broader structure—a restructuring that also led to executive departures, including Eulogio Sánchez, who had overseen the integration from an operational standpoint.
The shift comes amid mounting pressure on the business. Mayoral closed 2024 with a 7.5% drop in revenue, falling to €370 million, and sold 28 million garments, while setting a 2025 target of €400 million in sales and continued expansion of its retail network.
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