Arcadia bosses to face 50% pay cuts as 14,500 staff furloughed

Philip Green’s Arcadia Group has announced it has placed 14,500 members of staff on government furlough and has revealed its executive team will take a salary reduction of up to 50%.

The group, which closed its stores around two weeks ago, said it “remains unclear” how long these closures will be in place and as such it is taking “decisive steps” to mitigate the impact on the group.

All of its store employees have been furloughed effective from 21 March and the majority of its head office employees will be furloughed from 5 April.

It added that a “significantly reduced” number of head office employees will continue in their roles to provide essential functions for the group.

In addition, “in support of these challenging times” the board and senior leadership team of Arcadia will take a salary reduction of between 25%-50%. Group CEO, Ian Grabiner, has elected to receive no salary or benefits until further notice.

Our online operations are continuing albeit at a reduced capacity as part of an

Grabiner said: “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.”