Coronavirus: DFS chiefs to take pay cut and New Look pauses production to address impact

Action includes DFS directors taking pay cuts and New Look pausing all production, as well as both cutting marketing spend.

DFS said that as well as temporarily shutting its branches and manufacturing facilities, it was also suspending deliveries ”to protect our people and our customers”.

DFS said that with support from the Government’s Coronavirus job retention scheme, it intends ”to maintain employment for our colleagues for as long as possible”. There has been agreement from ”senior leaders of the business to reduce their pay while this shutdown continues” and annual salary reviews will be deferred.

Among other measures, DFS said it would be ”working with landlords to secure improvements to payment schedules on leased properties”.

Similarly, New Look said it has asked landlords for a three-month rent holiday. New Look is also “pausing all production, to be reviewed as the situation evolves and in response to demand” and implementing various other cost measures.

Given the unprecedented circumstances that we - like all retailers - are operating in, we have taken a range of decisive and immediate actions to help us navigate through the coming period.

DFS chief executive Tim Stacey said: “DFShas traded for over 50 years, during which time we have faced many difficult periods including the 2008 financial crisis.  On every occasion, thanks to our customers and colleagues, and the long-standing relationships with our suppliers and other stakeholders, we have emerged stronger.”

New Look chief executive Nigel Oddy said: “We are confident that a combination of ongoing actions, the significant financial and operational progress we have made over the past two years with our turnaround plan, and the strength of our brand mean that we will be well-positioned to return to growth when a more normalised operating environment resumes.”