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Arcadia Group furloughs majority of staff as bosses face 50 percent pay cuts

By Huw Hughes

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Business

Arcadia Group, which owns brands Topman, Topshop, and Burton, has furloughed the majority of its staff in new measures to mitigate the impact of Covid-19 on the business.

The company said all store employees have been furloughed since 21 March and “the majority” of its head office employees will be furloughed from 5 April.

The board’s senior leadership team will be taking pay cuts of between 25 percent - 50 percent, while group CEO Ian Grabiner has elected to forgo a salary or benefits until further notice.

Arcadia Group said its online operations are continuing “at a reduced capacity” to ensure the safety of staff in its distribution centres and in line with government guidelines.

The company has also been seeking rent cuts to cut costs since the government ordered the closure of all ‘non-essential’ stores in the UK in a bid to curb the spread of the coronavirus pandemic.

Grabiner said in a statement: “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.”

Photo credit: FashionUnited

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