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By
Reuters
Published
Apr 1, 2020
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Polish fashion retailer LPP cuts management pay to almost zero

By
Reuters
Published
Apr 1, 2020

Polish fashion retailer LPP will cut pay for its management board members to a symbolic one zloty ($0.2406) in a move seen as a solidarity gesture with employees facing layoffs caused by the crisis triggered by the coronavirus pandemic.


LPP


Consultancy firm PWC and a lobby group representing retail companies said on Tuesday that 300,000 jobs in the Polish fashion business are at risk, according to state news agency PAP.

“Members of the management board of LPP SA, starting from April 2020, agreed to lower their salaries to the symbolic amount of 1 zloty. The salary reduction will apply until the financial situation of the company is safe and predictable,” LPP, a home grown rival to Sweden’s H&M and Spain’s Inditex, said in a statement.

Earlier this month LPP Chief Executive Marek Piechocki said the group had enough resources to continue paying salaries for the next 4-6 months.

He called the current situation ‘a war’, while the industry lobby group said the fashion business may not survive unless the government, banks and shopping mall owners help retailers bear the costs of the coronavirus crisis, as Poland closed non-essential shops to stop the spead of the virus.

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