The Boohoo Group is facing internal criticism over a trip taken by around 30 senior executives to Bodrum, Turkey.
- Executives, including Mahmud Kamani and John Lyttle, flew from Manchester to Bodrum amid growing financial losses.
- Staff expressed concerns about the timing, coinciding with the company’s financial struggles and low morale.
- A decision was made to cancel bonuses for top executives following shareholder feedback.
- Boohoo Group declined to comment on the executives’ trip, which is reportedly self-funded.
The Boohoo Group recently found itself under scrutiny from its employees due to a trip to Bodrum, Turkey, taken by approximately 30 senior executives, including prominent figures such as Executive Chairman Mahmud Kamani, Executive Director Carol Kane, and Group CEO John Lyttle. This journey comes at a time when Boohoo is grappling with significant financial challenges, prompting frustration among staff members who are seeking solutions to enhance profitability while observing some leaders embarking on a foreign excursion.
The timing of this trip has raised eyebrows internally, particularly as Boohoo’s financial results for the fiscal year ending February 29, 2024, showed a substantial increase in losses before tax, rising from £90.7 million in 2023 to £159.9 million. Revenue also experienced a decline of 17% year-on-year, culminating at £1.46 billion. Amidst these financial woes, an employee voiced concerns, stating, “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].”
The decision not to award bonuses of £1 million each to Kamani, Kane, and Lyttle in May came after engaging with shareholders who expressed their discontent, resulting in the withdrawal of the bonus plan just ahead of the annual general meeting scheduled for June 10. This move illustrates the mounting pressure Boohoo faces in balancing executive decisions with shareholder expectations.
Boohoo personnel are particularly aggrieved given the company’s current difficulties, with one staff member highlighting the issue, mentioning that taking time away “when the business is really struggling” significantly impacts overall morale, already at a low ebb.
Although a source close to the company indicated that the trip is for social purposes and executives are expected to be available to work remotely if necessary, Boohoo has not yet issued an official comment regarding the trip’s perception among its workforce.
The Boohoo Group faces mounting internal and financial pressures as executives’ overseas trip draws criticism amidst company struggles.
