Expertise Events
advertisement
Expertise Events
advertisement
Expertise Events
advertisement
Goto your account
Search Stories by: 
and/or
 

News













Michael Hill International has put in place cost-saving measures as sales plunge due to the COVID-19 crisis.
Michael Hill International has put in place cost-saving measures as sales plunge due to the COVID-19 crisis.

Michael Hill executives to take pay cut; repayments to employees on hold

In order to reduce costs during the COVID-19 pandemic, Michael Hill International has suspended all executive bonuses, cut board members’ salaries by 50 per cent, and paused its remediation program for underpaid staff members.

The company made the announcements in a quarterly trading update for investors. It noted that the majority of the remediation payments – estimated at between $10 million and $25 million – had been completed.

Daniel Bracken
Daniel Bracken
"A crisis always creates opportunities… We will emerge as a stronger, leaner, and more agile business"
Daniel Bracken, Michael Hill International

Staff members who remain unpaid will receive interest on the outstanding amount, though no date has been specified for when the payments will resume.

Michael Hill International also revealed the extent of the impact of the COVID-19 pandemic on its business, with quarterly revenue across its stores in Australia, Canada, and New Zealand falling 11.2 per cent when compared with the same period last year.

The company noted same-store sales growth of 5.7 per cent as at 29 February, but sales were severely hampered by the decision to close its entire store network on 23 March.

All retail staff, and 100 support staff, have since been stood down with access to leave entitlements and government support schemes. The company has also entered into negotiations with landlords for rent abatement.

Notably, Michael Hill International’s e-commerce sales have increased by 49.1 per cent in Australia and Canada. Figures were not available for its New Zealand online store as it is unable to deliver products due to government restrictions. 

Daniel Bracken, CEO Michael Hill International, remained optimistic for the future, saying, “The business entered the crisis on a strong footing in all markets and channels. The crisis has afforded us the ability to really focus on our digital business.

“A crisis always creates opportunities… We will emerge as a stronger, leaner, and more agile business,” he added.

In the quarterly update, Michael Hill management indicated that its 301 stores would reopen “as soon as local laws, public health guidelines and consumer demand dictate”.

 

More reading:
Michael Hill International closes all stores indefinitely
Michael Hill orders to pay former employee more than $270,000
Michael Hill changes website, removes diamond claims
Michael Hill underpaid staff by up to $25 million

 

 











Kunming Diamonds
advertisement








Wednesday, 03 June, 2020 12:12am
login to my account
Username: Password:
Peter W Beck
advertisement
Rapid Casting
advertisement
SAMS Group Australia
advertisement
© 2020 Befindan Media