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LPP S.A. Press room The Supervisory Board of LPP resigned from remuneration for the time of the crisis

The Supervisory Board of LPP resigned from remuneration for the time of the crisis

22.04.2020

• Members of the Supervisory Board of the Polish clothing manufacturer resigned from their remuneration until the company’s financial situation becomes stable again

• The decision of the supervisory body of LPP was taken as a gesture of solidarity with the company’s Management Board and all its employees in the face of the crisis caused by the COVID-19 pandemic

• All activities undertaken so far by the Management Board and Supervisory Board of LPP are aimed at maintaining the stable situation of the company and preserving as many jobs as possible.

Since March this year, when significant restrictions on commercial activities came into force, LPP has been implementing a number of solutions aimed at maintaining the company’s financial liquidity. Securing the company’s operations while recovering from the crisis, and thus preserving as many jobs as possible, are the primary objectives driving all decisions taken by the governing bodies of LPP. Resignation from remuneration by members of the Supervisory Board is yet another step in this direction.

– As members of the Supervisory Board of LPP, we are not indifferent to the challenges currently faced by the entire company. Bearing in mind above all the safety of its employees as well as long-standing business partners, as a gesture of solidarity with the company’s Management Board, we have decided, together with other members of the Board, that until the financial situation becomes stable again, we will not receive remuneration for the functions performed. We are convinced that all forms of expenditure restraint in this exceptional situation are necessary for a company with such a long-standing tradition on the market in order to survive and grow over the decades to come – comments Wojciech Olejniczak, Vice-Chairman of the Supervisory Board.

The resignation from remuneration by members of the Supervisory Board is another action taken in recent days, after the reduction of the Management Board remuneration. The Management Board of LPP also recommended that the Supervisory Board should pay no dividend for the financial year ended 31 January 2020. At the same time, the company is introducing a number of actions aimed at optimizing areas supporting the company’s operations during the epidemic and during the period of recovery from the recession, i.e. significant reduction of capital expenditure or strengthening of the e-commerce channel.

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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. 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.