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Arcadia furloughs head office staff

Arcadia Group has furloughed nearly all head office employees across the group, and the board and senior leadership team will take a salary reduction of between 25%-50% amid the coronavirus crisis. 

The group has about 16,000 employees, of which around 14,500 are now being furloughed. 

Drapers understands this impacts various teams, including those in buying and design across Topshop, Miss Selfridge and Dorothy Perkins.  

A company statement reads: “Safeguarding jobs through this period is critical and we are grateful for the government support offered by the job retention scheme which will enable us to ‘furlough’ a substantial number of our colleagues who are unable to work. All store employees have been furloughed effective from 21 March and the majority of our head office employees will be furloughed from 5 April.”

It adds: “A significantly reduced number of head office employees will continue in their roles to provide essential functions for the Group. In support of these challenging times the board and senior leadership team will take a salary reduction of between 25%-50%.”

Meanwhile, group CEO Ian Grabiner, has elected to receive no salary or benefits until further notice.

Grabiner commented: “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.”

Arcadia Group’s online operations are continuing albeit at a reduced capacity as part of an implementation of strict safety measures in ensuring the well-being of employees within its distribution centres, and in accordance with the guidelines recommended by the government.

Last week the group wrote to suppliers to inform them that it will be cancelling all orders and extending payment terms, in a bid to protect the business during the coronavirus outbreak.

Since the coronavirus outbreak, retailers including Urban OutfittersPrimarkEdinburgh Woollen Mill Group (EWM) and New Look have also written to suppliers to cancel orders until further notice. 

 

 

 

Readers' comments (4)

  • MANY COMPANIES HAS SENT LETTERS FOR CANCELLATION OF ALL ORDERS, THEY HAVEN'T TRY TO FIND A CONMPROMIZE. I THINK THIS IS NOT THE RIGHT WAY TO ACT, HOW CAN SUPPLIER SURVIVE? WHO PROTECT THEM ? IT'S TO EASY NOT TO PAY AND NOT RESPECT CONTRACTS FOR ALL RAW MATERIALS BOUGHT OR COMPONENTS MADE OR ALL PRODUCTION ALREADY DONE BY SUPPLIERS. THEY HAVE ALREADY PAID THEIR SUPPLIER, NOW HOW CAN THEY CONTINUE? MANY OF THEM NOT BE ALIVE AFTER ALL OF THIS.

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  • Cancelling all orders when we have goods made, cloth in house or on the water all at our cost is not in follow the English spirit of partnership....oh add extension of terms and the fact that we are owed money......what about suppliers, what about the workers in 3rd world countries. This is just not in the way forward.

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  • In times when doctors may be making choices on people's lives is it right that these large clothes warehouses that employ hundreds of people are still operating ??? Do people really need clothing in times like these. Each warehouse could be a breeding ground for this virus.

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  • What a disgrace ...just reflects the views of the owners . Look after number one . Does Grabiner want a medal for not taking his salary ? He and the other shareholders and directors have taken enough out already . Shame on the banks that allowed the Green family to take out the massive dividends which have eventually crippled the business . The only creditable action now is for the Green family to pump millions of their tax free cash back into the business ...... otherwise shame on all of them . The suppliers and landlords cannot prop up the business for ever and nor should the government

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