Boohoo Group employees express discontent over an executive trip amidst financial challenges.
- Around 30 senior executives, including key figures, travelled to Bodrum for a social trip.
- Staff criticism arose due to the timing of the trip amidst business struggles.
- The executive trip is reportedly not financed by the company.
- Boohoo previously faced backlash over executive bonuses amidst shareholder disapproval.
Boohoo Group has come under scrutiny from its employees following a trip involving approximately 30 senior executives to Bodrum, Turkey. This trip, characterised as social and self-financed, involves prominent figures such as executive chairman Mahmud Kamani and group CEO John Lyttle among others. The timing has sparked criticism given the company’s current financial difficulties.
The trip occurs at a time when Boohoo is grappling with substantial financial losses, recording a pre-tax loss of £159.9 million for the year ending 29 February 2024, a significant increase from the previous year’s £90.7 million. Concurrently, revenue has plunged by 17% year-on-year, reaching £1.46 billion. In light of these figures, employees have reportedly voiced concerns over the appropriateness of such a trip, questioning the priority of executives during ongoing company challenges.
One employee emphasised the brand’s ongoing struggles, pointing out cancelled meetings and efforts to bolster profitability. “We are struggling as a brand and all meetings have been cancelled this week. We have been implementing various actions to help profitability, yet the directors feel it appropriate to [go on a trip],” a staff member revealed.
Additionally, another employee highlighted the demoralising effect of the trip, stating, “Taking time out when the business is really struggling. Morale is already low.” This sentiment reflects broader concerns about leadership focus and priorities during a turbulent financial period.
Notably, Boohoo Group made the decision to cancel proposed bonuses of £1 million each for top executives, including Kamani and Lyttle, in May after significant shareholder backlash. This decision followed consultations with select shareholders ahead of the annual general meeting on 10 June. Despite these adjustments, the current trip has reignited debates over executive decision-making in financially testing times.
While the company has declined to comment on the journey, sources suggest that the executives remain available to work remotely during this period. Boohoo’s decision to characterise the trip as a social gathering underlines the attempt to mitigate criticism though scepticism remains among staff.
The executive trip to Bodrum has intensified existing concerns over leadership priorities amid Boohoo’s financial struggles.
