Penneys owner cuts executive salaries

The bosses of clothing retailer Primark — which trades here as Penneys — are to take a 50% temporary pay cut as the business continues to cut costs in the face of the disruption caused by the Covid-19 spread.

Primark’s chief executive Paul Marchant, along with George Weston and John Bason — CEO and finance director, respectively, of Primark owner Associated British Foods (ABF) — will take 50% cuts. ABF’s non-executive directors will take a 25% cut.

Primark said it will lose £650m (€740m) in net sales for each month its shops are closed across Europe and the US. It is also looking at ways to further reduce operating costs.

Elsewhere, Brown Thomas-Arnotts has committed to its workforce continuing to receive 100% of their pay. The retail group is availing of the Government’s wage subsidy scheme.

H&M is expecting second quarter losses after seeing sales plunge 46% last month. It has scrapped its annual dividend for the first time since its float in 1974.H&M and rival Zara have flagged heavy temporary staff lay-offs due to the virus-led shutdown.