LPP to pay for all orders in production & already produced

In response to Fibre2Fashion's email to LPP asking how the company intends to support its suppliers during the current crisis, LPP sustainability expert Anna Miazga said, "In these difficult times, it is our priority to maintain as many jobs as possible. The foregoing pertains both to our employees and to those of our suppliers. We are doing our utmost to support our suppliers in this hardship. First and foremost, all our obligations have been settled on an ongoing basis and we are going to pay for all the orders being in the production process and already produced.

"Due to the shutdown of our bricks and mortars, all of our magazines are nowadays full of the stock, what also causes delays to some of the orders. Because of this unprecedented situation we had to change plans for the next collections. We had to reduce orders for 2020 autumn/winter season by 40 per cent. Throughout this time, we have been cooperating with our suppliers and redistributing our orders and changing them in a way that will help our suppliers maintain their financial liquidity. As the longstanding employer, investor and business partner we do realise the role we play in the global production chain. We are aware of the high necessity to maintain business processes among our partners, that is why we try to make decisions that keep the maximum benefits to all parties."

LPP is facing an ever-increasing instability resulting from the impact of the coronavirus pandemic on the global economy. "We do not know when the crisis will end or what the conditions will be once it is over. Saving or recovering jobs will be possible only if LPP maintains financial liquidity, thereby ensuring its existence as the employer and the client. Therefore, once 95 per cent of our stores were closed and given that the revenues dropped by 90 per cent, we had to also make radical cost cuts.

"This, in turn, could not be done without impacting the business environment, so to limit the negative effect we are focusing on implementing changes at various stages of our operations. The LPP Management Board started with themselves and decreased their remuneration to the amount of PLN 1.00 (approx. €0.22) for the time of the crisis. We have suspended large investments in offices and warehouses. Additionally, we have decreased the salaries of our employees both in the stores and at the company headquarters – but with no plans for collective redundancies," Miazga said in her communication with Fibre2Fashion.

LPP is also on the list named COVID-19 Tracker, developed by The Worker Rights Consortium (WRC). It shows which brands are acting responsibly toward suppliers and workers. The company is also part of Call to Action initiative which aims to generate action from across the global garment industry to protect workers’ income, health and employment and support employers to survive during the COVID-19 crisis. 

Fibre2Fashion News Desk (RKS)