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.