• In view of the current economic situation and the effects of the crisis which are difficult to assess, the LPP Management Board members have reduced their remuneration to the token amount of PLN 1 until further notice.
• The Management Board of LPP also recommended that the company’s Supervisory Board pay no dividend for the financial year ended 31 January 2020.
• The recent decisions of the LPP Management Board are triggered by the current economic situation and the need to take measures aimed at maintaining the company’s stable standing and keeping as many jobs as possible.
The restrictions on commercial activities introduced and the general economic situation in which the company finds itself as a result of the growing epidemic threat and the exclusion of more than 95% of its chain of brick and mortar stores stores from operation have prompted the Management Board of LPP to take further, radical actions. The decision to limit the remuneration paid to members of the company’s Management Board to the token amount of PLN 1 was made primarily in the interest of the company and the safety of employees.
We are dealing with an unprecedented situation, therefore as the Management Board of a company providing employment to 25,000 people in several dozen countries, we are doing our best to maintain liquidity and thus ensure the possibility of maintaining jobs both at the headquarters and in the sales network. The coronavirus epidemic will inevitably take its toll on the entire economy and the labour market in particular. To avoid the worst-case scenarios, we need to react quickly and flexibly to what the next day brings. Therefore, the reduction of remuneration for all members of the Management Board will be applicable until the situation is safe and the effects of the recession we are currently dealing with are predictable and possible to eliminate – comments Przemysław Lutkiewicz, Vice President of LPP.
Reducing the remuneration of the company’s governing bodies is not the only action taken in recent days. The Management Board of LPP, by resolution of 30 March 2020, also recommended that the company’s Supervisory Board pay no dividend for the financial year ended 31 January 2020.
Earlier, the company also decided to suspend investments in IT projects which are not necessary for the company’s operations and in the expansion of the company’s headquarters in Gdańsk.
Despite the still uncertain situation, the company has not stopped its activities aimed at providing support to medical and care facilities in their fight against the epidemic. First and foremost, assistance has been directed to the facilities in need from Pomerania and Małopolska regions.
LPP SA is a Polish family business and one of the fastest growing clothing companies in the region of Central and Eastern Europe. For over 25 years it has been successfully operating in Poland and abroad, offering its collection already on 25 markets, including in such prestigious capitals as London, Berlin, Tel Aviv or Moscow. LPP SA manages five fashion brands: Reserved, Cropp, House, Mohito, and Sinsay. The company has a chain of over 1700 stores with the total area of over 1 million sq.m. The online offer of the brands collections is available on 30 markets. On the basis of a global supply chain, the Polish clothing producer distributes over 200 million pieces of clothing to three continents. LPP plays another important role as it employs over 25 thousand people in its offices and sales structures in Poland, Europe, Asia, and Africa. The company is listed on the Warsaw Stock Exchange in the WIG20 index and belongs to the prestigious MSCI Poland index.