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Stella McCartney fires hundreds of employees without plans to increase their taxpayer-funded wages

Fashion designer Stella McCartney has fired hundreds of her employees and asked those who continue to work to get a pay cut during the corona virus crisis.

McCartney will use the taxpayers’ money offered as part of the government’s job retention system to pay salaries, in a similar move to Victoria Beckham, who has been slammed for firing people despite her fortune of £ 335 million.

An employee said the staff were “extremely hurt” by the decision of McCartney, who has an estimated personal fortune of over £ 60 million.

“What she has done is morally wrong and socially unacceptable,” said one of the workers on leave.

Fashion designer Stella McCartney (above, last October) fired hundreds of her associates and asked those who continue to work to pay a cut in wages during the coronavirus crisis. The owner of the brand that Hollywood celebrities prefer will use the taxpayer's money offered under the government job retention scheme to pay the salaries of those who do not work

Fashion designer Stella McCartney (above, last October) fired hundreds of her associates and asked those who continue to work to pay a cut in wages during the coronavirus crisis. The owner of the brand that Hollywood celebrities prefer will use the taxpayer’s money offered under the government job retention scheme to pay the salaries of those who do not work

Unlike Victoria Beckham, who has put 30 staff on leave, McCartney, 48, has told her staff that there are no plans to increase their wages with an improved package. Employees who work in McCartney's two flagship stores in London have received letters informing them of the company's decision. (Upstairs, McCartney's Mayfair store)

Unlike Victoria Beckham, who has put 30 staff on leave, McCartney, 48, has told her staff that there are no plans to increase their wages with an improved package. Employees who work in McCartney's two flagship stores in London have received letters informing them of the company's decision. (Upstairs, McCartney's Mayfair store)

Unlike Victoria Beckham, who has put 30 staff on leave, McCartney, 48, has told her staff that there are no plans to increase their wages with an improved package. Employees who work in McCartney’s two flagship stores in London have received letters informing them of the company’s decision. (Upstairs, McCartney’s Mayfair store)

An insider told MailOnline that as many as half of the 1,400 employees were placed on leave in 51 stores worldwide. (Pictured, the designer's shop on Old Bond Street)

An insider told MailOnline that as many as half of the 1,400 employees were placed on leave in 51 stores worldwide. (Pictured, the designer's shop on Old Bond Street)

An insider told MailOnline that as many as half of the 1,400 employees were placed on leave in 51 stores worldwide. (Pictured, the designer’s shop on Old Bond Street)

The daughter of former Beatle Paul, Stella McCartney is now one of the most recognized names in fashion with her celebrity-preferred designs. She is seen above, right, with her father and sister Mary

The daughter of former Beatle Paul, Stella McCartney is now one of the most recognized names in fashion with her celebrity-preferred designs. She is seen above, right, with her father and sister Mary

The daughter of former Beatle Paul, Stella McCartney is now one of the most recognized names in fashion with her celebrity-preferred designs. She is seen above, right, with her father and sister Mary

“We all expected a lot more from Stella, but she hasn’t shown loyalty. She is proud of her social credentials, but we just got dumped. ‘

Unlike Victoria Beckham, who has put 30 staff on leave, McCartney, 48, has told her staff that there are no plans to increase their wages with an improved package.

Under Chancellor Rishi Sunak’s rescue package, companies can claim up to 80 percent of the pay up to a maximum of £ 2,500.

Meghan Markle wore one of Stella McCartney's £ 1,500 coats on Remembrance Sunday and had her design her dress for her wedding reception (photo) in May 2018

Meghan Markle wore one of Stella McCartney's £ 1,500 coats on Remembrance Sunday and had her design her dress for her wedding reception (photo) in May 2018

Meghan Markle wore one of Stella McCartney’s £ 1,500 coats on Remembrance Sunday and had her design her dress for her wedding reception (photo) in May 2018

Stores in cities such as New York, Los Angeles, and Las Vegas have also been forced to close due to the closure of nonessential stores in an effort to stop the spread of Covid-19. (Upstairs, one of Stella's stores in Manhattan)

Stores in cities such as New York, Los Angeles, and Las Vegas have also been forced to close due to the closure of nonessential stores in an effort to stop the spread of Covid-19. (Upstairs, one of Stella's stores in Manhattan)

Stores in cities such as New York, Los Angeles, and Las Vegas have also been forced to close due to the closure of nonessential stores in an effort to stop the spread of Covid-19. (Upstairs, one of Stella’s stores in Manhattan)

Ms. Beckham plans to make up the 20 percent for those hired on the government.

But she’s still been heavily criticized for asking the government to pay the other 80 percent of her wages, when her purse collection alone would be worth £ 1.5 million.

Her fashion label is asking £ 1,500 for a dress and Ms. Beckham recently bought a £ 17 million penthouse in Miami with her husband David. The couple also saved £ 100.00 on the 21st birthday of their eldest son Brooklyn.

But she said the 30 marketing, customer service, and those working in her Mayfair store will be fired for two months so far.

Stella’s stores around the world

Stella McCartney has 51 freestanding stores (with 1,400 employees) at:

  • Soho of Manhattan
  • Mayfair and Brompton Cross in London
  • LA’s West Hollywood
  • Palais Royal in Paris
  • Milan
  • Tokyo
  • Shanghai
  • Beijing

Its collections are distributed in 77 countries through 863 doors, including specialty stores and department stores, and are shipped online to 100 countries.

Source: stellamccartney.com

Meanwhile, staff working in the two McCartney flagship stores in London have received letters informing them of the company’s decision.

An insider told MailOnline that as many as half of the 1,400 employees were placed on leave in 51 stores worldwide.

Stores in cities such as New York, Los Angeles and Las Vegas have also been forced to close due to the closure of nonessential stores in an effort to stop the spread of Covid-19.

The website of the Stella McCartney brand features the slogan: ‘We are all in this together’ and two models pulling one of her expensive handbags.

In addition to stores in London, McCartney sportswear, apparel and accessories are sold in Harrods and Harvey Nichols.

They have all been forced to shut down since Boris Johnson announced the shutdown.

The daughter of former Beatle Paul, McCartney is now one of the most recognized names in fashion with her celebrity-preferred designs.

Meghan Markle wore one of her £ 1,500 coats on Remembrance Sunday and had her dress designed for her wedding reception.

Victoria Beckham has fired 30 staff from her struggling fashion label, despite a stunning family fortune of an estimated £ 330 million. Shown with husband David and daughter Harper

Victoria Beckham has fired 30 staff from her struggling fashion label, despite a stunning family fortune of an estimated £ 330 million. Shown with husband David and daughter Harper

Victoria Beckham has fired 30 staff from her struggling fashion label, despite a stunning family fortune of an estimated £ 330 million. Shown with husband David and daughter Harper

Ms. Beckham is expected to increase her wages in an “improved package” by paying the remaining 20 percent – although she is not required to. Victoria Beckham’s store, Hong Kong

What is ‘leave’? The subsidy scheme with a price tag of £ 40 billion

Before the closure, the word ‘leave’ was unclear and was rarely used in the UK.

But as the coronavirus crisis in Britain has worsened, it has become an everyday language for families concerned about their financial future.

It refers to an unprecedented plan that Chancellor Rishi Sunak announced last month to protect jobs as the economy is ravaged by the effects of the corona virus.

Under the scheme, the state will cover up to 80 percent of workers’ salaries in March, April and May if companies keep them on the payroll instead of firing them.

Payments are limited to a maximum of £ 2500 per month. More than nine million workers are expected to be fired or effectively paid with taxpayers’ money.

Employers pay their employees, but claim the HM Revenue and Customs subsidy at the end of this month.

Last week, Mr. Sunak announced that the wage subsidy would be available until the end of June and added that he will renew it if necessary.

However, the extraordinary schedule comes with a dazzling price tag.

According to The Resolution Foundation’s think tank, it costs the taxpayer £ 40 billion for every three months it is open.

The Stella McCartney brand has sales in excess of £ 500 million a year and is the sole owner of her company to buy out a joint partner two years ago.

The designer, who is married with four children, is likely to have a setback in her decision to seek tax money for her staff.

A Stella McCartney spokesperson told MailOnline that not all staff were on leave. They declined to comment on cut wages for staff.

TV presenter Piers Morgan led Victoria Beckham’s conviction, calling her a “spoiled prima donna.”

He wondered why she could receive taxpayers’ money to pay her staff, after Secretary of Culture Oliver Dowden said that companies should only use the taxpayer-funded scheme “when necessary.”

Of Good Morning Britain, he said, “I think every person and every company should ask themselves: should they trust the taxpayer?

“Because this arrangement is for when you’re about to fire someone and you don’t have the money to hire him or her, you can trust the government won’t fire people.”

Ms Beckham, based in Hammersmith, West London, has not made a profit since its launch in 2008.

In 2018 it suffered losses of £ 12.3 million.

The year before, Ms. Beckham lost £ 10.3 million, but the company was supported by her ex-footballer.

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