Members of the Supervisory Board of LPP, a Polish clothing manufacturer and owner of the Reserved, Cropp, House, Mohito and Sinsay brands, resigned from remuneration until the company’s financial situation has stabilised. This is related to the COVID-19 pandemic.
Supervisory Board of LPP resigned from remuneration
LPP announced in a press release that members of its Supervisory Board resigned from receiving their remuneration for the duration of the crisis caused by the outbreak of coronavirus in Poland. LPP’s Supervisory Board will not receive any remuneration until the company’s financial situation has stabilised.
Earlier, on 31 March, LPP’s Management Board reduced its remuneration to PLN 1 until further notice.
E-commerce channel on the rise
In mid-April, LPP also summarised the impact of the COVID-19 epidemic on its operations to date. Due to restrictions on the operation of retail outlets in 21 of the 25 markets where LPP operates, 95% of its stores were closed. This means a nearly 100% decrease in revenues from stationary sales. On the other hand, the company’s online sales increase was 150% y/y.
At the same time, LPP’s management decided to implement the crisis recovery scenario and assumed: strengthening of the online channel, strict cost discipline and improvements in logistics and effective inventory management. The planned reduction of the investment will amount to PLN 620m and will concern the postponement of new stores openings, expansion of the company’s headquarters and postponement of the construction of a new distribution centre in Brzesc Kujawski.
LPP is a Polish clothing company and operates on 25 markets. The company manages five fashion brands Reserved, Cropp, House, Mohito and Sinsay and has 1,700 stores. LPP’s online offer is available in 30 countries.