The fashion group, which operates chains including Topshop and Dorothy Perkins, has said it will pay head-office staff facing redundancy their full salaries.

The U-turn by Arcadia follows reports that 300 head-office staff facing redundancy would receive as little as 50% of their salary and would be paid through the furlough scheme, rather than receiving their full salary.

A statement from the fashion group said: “We recently implemented a policy for those employees who are working their notice on furlough to receive their furlough pay instead of their full pay.