Arvind Fashions defers 50% to 80% of staff salaries for April
Fashion retailer Arvind Fashions has seen its apparel brand sales drop during lockdown and has deferred employees’ salary payments by between 50% and 80% for the month of April.
“Arvind Fashions has currently made an on-account payment for salaries in the month of April and not a salary cut,” said Arvind Fashions’ CEO, J Suresh, ET Retail reported.
“On-account payment is done to support employees to take care of their immediate requirements. Since April is a zero sales month we are paying the advance and we will be able to pay the balance when the situation improves and things become normal. As retail is now slowly opening up our intent is to get back to normal salary levels at the earliest.”
Arvind Fashions’ salary payments could be affected for a few more months, an anonymous source told ET Retail. Although many shops are reopening at a limited capacity during the extended lockdown, consumer sentiment is expected to remain muted for non-essential product categories including fashion.
Employees of the business will be paid a reduced salary, which will be made up when the business can afford to do so. Top management salaries will be reduced by 80% for April, according to a letter sent by Arvind Fashions to employees, accessed by ET Retail.
Bengaluru-based Arvind Fashions retails a range of international apparel brands in India including Gap, Aeropostale, Arrow, and Tommy Hilfiger among others. The business recently ceased retailing brands Elle, Gant, Izod, and Nautica.
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