New Look scraps £12m bonus for top management
New Look has backtracked on an executive pay scheme that included a £12m bonus for bosses and directors after its third quarter report revealed a decline in revenue and widening losses.
The plan was created in 2015 when the company was showing signs of a possible surge in revenues and profits. The bonuses were linked to the values of the shares of the company.
But according to This is Money, the scheme was vetoed after New Look South African owner Brait SE wrote off the value of the chain to zero in November.
Earlier this month, New Look revealed it had sunk deeper into the red with pre-tax losses reaching £123.5 million in the third quarter, compared with pre-tax profits of £29.2 million the year before. Revenue for the period dropped by 6.3%, with like-for-like sales sliding by almost 11% in the UK.
The weak performance has led the company to announce plans to close up to 60 of its nearly 600 stores, and is seeking rent cuts for an undisclosed number of additional stores.
In a financial update earlier this month, CEO Alistair McGeorge said the company is focusing on reducing costs, recovering the broad appeal of its product and reconnecting with customers.
“We are already realigning our pricing to offer significantly better value, adding flexibility to our buying model, and improving our speed to market. Additionally, we are working hard to achieve a better alignment between ecommerce and stores. Taken together, this will help to drive future full price sales,” he said.
New Look has 907 stores worldwide, operating across Europe, China and Asia. It was acquired by South African investment company Brait SE for $1.2 billion (£780 million) in 2015.
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