Stella McCartney got pay rise while fashion firm took furlough cash | Stella McCartney

Last year Stella McCartney received a salary of nearly £ 2.7 million from her fashion company, an increase of over £ 220,000 from the previous year, while the company has supported nearly £ 850,000 in support of the program. government leave.

The designer’s salary increased despite a 26% drop in sales to £ 28.4 million in the year to 31 December 2020, as UK sales more than halved, while the company posted a loss before taxes of 31.4 million pounds, according to the accounts. for Stella McCartney Limited filed with Companies House. The group recorded a gross loss of £ 33.4 million the year before.

Accounts show that McCartney’s label, in which it sold a minority stake to French luxury goods conglomerate LVMH in 2019, said it was dependent on additional funds provided by its new shareholder to maintain business continuity.

LVMH, which owns a number of high-end brands including Louis Vuitton, Christian Dior and Givenchy, had already provided further loans of £ 26.3m last year, bringing total loans to the group to just over £ 66m. of pounds.

Stella McCartney Limited said the directors of Anin Star Holding, LVMH’s investment vehicle, had “indicated their intention to continue making these necessary funds available to the company,” but there was no certainty that the support would continue. .

The London-based fashion firm, which prides itself on its environmental and ethical credentials, said its goal for 2021 was to increase sales by 4% and “significantly reduce” losses. However, the business is likely to have continued to be impacted by further roadblocks and socialization limits imposed during the Covid-19 pandemic.

LVMH bought McCartney’s label in 2019 just over a year after closing its 17-year business partnership with its rival conglomerate Kering, and bought back its 50% stake in its brand.

McCartney, the daughter of former Beatle Sir Paul and the late photographer and animal rights activist Linda, designed her first jacket as a teenager. After a work experience at Christian Lacroix, she became the creative director of the Parisian fashion house Chloé, before starting her own label in a joint venture with Kering, the owner of Gucci, in 2001.

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A spokesperson for Stella McCartney Limited said: “During the lockdown, executives, including Stella, suffered a salary cut. The 2020 accounts point to a transition year and the effects of the pandemic on the retail sector, but given these challenges, brand sales have remained strong.

“In common with all companies in our industry, we are currently facing one of the most difficult times faced by a generation and conducting a review to adapt our business to the economic changes in our industry.

“Our mission to end animal cruelty and to help incorporate sustainability as core principles into business conduct has produced real progress. We are confident that we can emerge stronger and better equipped to continue the vital work towards a more sustainable future for all. “

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