New Look has rejected a £12m scheme for its top team launched in 2015 as it mulls shuttering up to 60 stores.
The beleaguered fashion retailer has scrapped the £12m bonus scheme, which was drafted when the retailer was poised for stellar sales growth, according to the Daily Mail.
However, because the bonuses were linked to the value of the fashion retailer’s shares, the pay plan was culled after South African owner Brait slashed the value of the firm.
New Look’s drafted pay plan had former boss Anders Kristiansen and other directors in line for bonuses in the region of a million pounds or more, with the first tranche of payments set to be released in September.
Less senior managers had been given shares worth £2,000.
New Look’s returning boss Alastair McGeorge has created a turnaround plan for the embattled retailer, which includes focussing on an older, less trend-led customer and lowering prices.
The fashion retailer is also reportedly mulling a company voluntary arrangement (CVA) in a bid to shutter 60 of its underperforming stores, which comprises 10% of its overall bricks-and-mortar estate.
McGeorge told Retail Week that onlookers shouldn’t “be in any doubt we can make necessary changes to get this brand back to its broad appeal” off the back of dismal third-quarter results earlier this month.