The current pandemic is affecting businesses across the country. However, some companies have been at the source of public backlash due to recent decisions about furloughing staff, including Victoria Beckham.
The singer turned fashion designer previously decided to furlough staff in light of the downturn in business due to the current COVID-19 pandemic. However, Victoria insisted this was a decision by the board. But that didn’t stop the public backlash she received for making the choice to furlough 30 staff at her fashion brand.
The former Spice Girl has, in fact, had a rocky few months with the fashion label, and in November, it recorded losses of £12 million. Despite celebrity endorsement and a myriad of followers, the brand has made £35 million in losses since its formation.
However, even with the brand’s gloomy accounts, the public did not sympathise with the decision to get a government bailout for her staff.
There was also a scathing attack from Piers Morgan, who said: “Talking about altruism and generosity, how nice it was to read over the weekend that Victoria Beckham has decided to furlough 30 of the staff of her failing fashion business – the one that makes no money, that loses money year after year, the one that’s been bailed out until now by her fabulously rich husband, David Beckham.”
In response to the backlash, the brand has made a complete U-turn. In a statement to the Guardian, she said, “We will not now be drawing on the government furlough scheme. At the beginning of the lockdown the shareholders agreed with senior management to furlough a small proportion of staff. At that point, we didn’t know how long the lockdown might last or its likely impact on the business. The welfare of my team and our business means everything to me.”
According to a spokesperson, after going into lockdown, the company “made decisions as best we could to try and protect our staff. We’ve now reconsidered, and we accept there’s a better way forward for our business. These are tough times and tough decisions, and we don’t always get it right – all we can say is we are trying to protect our business and our staff.”
This news comes after another blow for the company, where a former employee claims she developed carpal tunnel syndrome from working at Victoria Beckham Ltd and is suing the company.
Saying she needed painkillers to work at the brand to cope with the pain, Kristina Kubiliene also said she worked up to 15 hours a day in the run-up to New York Fashion Week. Natasha Moyeed, who is representing Ms. Kubiliene, noted: “She was a pattern cutter and very good at this job, but because she was good, she was tasked with working for long periods and with heavy fabrics.”
Two major high street stores closing
It’s not just celebrity brands suffering; the whole of the retail sector is feeling the strain during the pandemic. After announcing difficulties, highstreet stores Oasis and Warehouse are set to close, as they were unable to find a buyer.
