Victoria Beckham reverses decision to furlough 30 staff

1 May 2020, 10:50

By EJ Ward

@EJWardNews

Victoria Beckham has reversed her decision to furlough 30 staff at her fashion label during the coronavirus pandemic.

Last month, the fashion designer, who has a net worth estimated at £335m, faced a backlash from the public when she made the decision to use the Government coronavirus assistance scheme.

In a statement two weeks after the initial decision was announced, the designer said the application to the Government scheme has been withdrawn and all employees concerned will be restored to their roles.

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In a statement to the Guardian, Beckham 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.”

“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,” they said.

A spokesperson for the brand said they would rely on support from shareholders to avoid using the COvid-19 assistance scheme.

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When the fashion designer made the announcement, the Sun newspaper reported the 46-year-old offered the furloughed staff "enhanced packages" and said she has "forgone her own salary."

Good Morning Britain presenter Piers Morgan hit out at the decision when it was announced, branding Victoria and her husband David "primadonna multi-millionaires" he said they could afford to pay their staff during the crisis.

The coronavirus job retention scheme, which covers 80% of workers' pay, is due to run until June 1 but there are fears firms could start to cut staff unless the Government clarifies whether the scheme will be extended.