Arcadia has said it will furlough “a substantial number” of staff, and its board and senior leadership team will take salary reductions as it battles to deal with the fallout from the ongoing coronavirus crisis.
The struggling fashion group – which owns brands such as Topshop, Burton and Miss Selfridge – said all store staff have been furloughed from March 21, with “the majority” of head-office employees to follow suit from April 5.
All furloughed staff will be placed on the government’s coronavirus job retention scheme, which will allow them to receive 80% of their salaries up to £2,500 a month.
Arcadia closed its store estate on March 20 and said that, given the ongoing uncertainty around how long those closures would be in place, it had to take these measures to mitigate the financial impact on the group.
Alongside furloughing its staff, Arcadia’s senior leadership team and board will take salary cuts of between 25% and 50%, while group chief executive Ian Grabiner has elected to receive no salary or benefits until the crisis is resolved.
The retailer said that, while its online operations continue, they are doing so at a “reduced capacity as part of an implementation of strict safety measures in ensuring the wellbeing of employees within our distribution centres, and in accordance with the guidelines recommended by the government”.
Grabiner said: “The health and wellbeing of our employees, customers and communities remains paramount. The actions we have taken are essential in order that we can manage our business through these unprecedented times.
“We are grateful for the support and understanding of our staff and all of our stakeholders during this incredibly challenging time. We look forward to opening our store doors again as soon as it is safe to do so and welcoming back our colleagues and customers.”
No comments yet