- Huw Hughes |
Stella McCartney could be the latest British fashion company to cut jobs and close stores in a bid to soften the financial impact of Covid-19.
According to an internal note written by CEO Gabriele Maggio, seen by WWD, the company is planning a number of measures to cut costs. These include job cuts, asking remaining staff to accept salary cuts for an extended period of time, and reevaluating the brand’s store estate. This could result in some stores being turned into franchises or deals to be made with new wholesale partnerships, though nothing has been finalised.
McCartney herself has reportedly foregone her salary throughout the pandemic.
Tough times for UK fashion companies
Maggio told WWD: “In common with all companies within our sector, we are currently dealing with one of the most challenging periods faced by any generation, and are conducting a review in order to adapt our business to the changing economics of our industry. No decisions on redundancies have been taken, and we are in consultation with staff at all levels to determine the scale and structure of our business going forward.
“Our mission to end animal cruelty and to help embed sustainability as core principles in corporate conduct has delivered real progress in recent years, and I am confident we can emerge stronger and better equipped to continue the vital work towards a more sustainable future for all.”
This is the latest in a growing list of British fashion companies being forced to close stores and cut jobs as they struggle with the knock-on effect of months of store closures. Last week, fellow luxury label Burberry announced it would be axing 500 jobs internationally while reporting a 48 percent dive in retail sales for the first quarter.
John Lewis, Marks & Spencer, River Island, Ted Baker, Harrods, Harvey Nichols, Arcadia and White Stuff are other British high street names to have been forced in the past months to consider job cuts.
Photo credit: Stella McCartney, Facebook