GMB slams Asos fat cats and calls for coronavirus shutdown
The GMB union has stepped up its word of wars with Asos, labelling bosses ‘fat cats’ and accusing them of “revelling in extravagant profits while workers risk their safety to keep the empire afloat”.
Unlike many of its competitors, the fast fashion pureplay has stayed open throughout the coronavirus outbreak. It recently reported a 21% rise in sales to £1.6 billion for the six months to the end of February. And it posted a record pre-tax profit of £30.1 million in the first half, the result of strong trading and cost cutting.
At the same time, it has raised more than £200 million from shareholders as it seeks to mitigate the effects of the lockdown that has reduced consumers’ appetite for clothes etc. Asos also said it was finalising discussions to secure a 12-month extension to its debt facility of between £60 million and £80 million.
It is seeing a significant downturn in demand, with sales dropping as much as 25% in the last three weeks of trading. Meanwhile, according to the GMB, its warehouse workers are begging the retailer to close, saying they are ‘like rats’ trapped in a ‘cradle of disease’.
Neil Derrick, GMB Yorkshire Regional secretary, comments: “While competitors have closed their doors where they could not keep their workers safe, Asos has seen coronavirus as a business opportunity and stayed open for a flash sale. That’s helped them to post extravagant profits over £30 million.”
“Asos need to do the decent thing - if it can’t keep people safe it must close its doors and take advantage of the government’s 80% furlough scheme. Today’s results show that Asos can more than afford to top this up. The company says they want to do the right thing – now is the time to actually do it,” he adds.
‘A really strange time for everyone’
Earlier this month, Asos overhauled its delivery options in line with increased coronavirus related safety measures in its fulfilment centres.
“We know this is a really strange time for everyone RN, but we want to continue providing you with a moment of escapism,” the pureplay said in a statement posted on its social media channels.
“We’re doing all we can to keep Asos here for you by following all government guidance, while it advises online retail to stay open for the good of the economy, to protect jobs and to help people to stay at home,” it added.
Asos insisted that its priority remained its staff and customers’ wellbeing, hence changes to delivery options and also its site. “We’ll still have new items dropping each week for you, but you’ll have noticed a change of scenery and a few familiar faces, as models and Asos insiders shoot products from their own homes.”
Standard delivery, meanwhile, now takes up to 15 days. Next day is no longer available and has been replaced with 'fastest delivery' (up to three days).
