Burberry under pressure for destroying stock
19/07/2018
In its annual report for the 2017/18, Burberry stated that it had destroyed finished products worth £28.6 million. This is an increase from the £26.9 million reported in the previous year and the £18.8 million reported in 2016. The 2018 figure included more than £24 million in ready-to-wear products and accessories.
Bloomberg has reported that some investors called into question this practice during a recent annual general meeting. They also asked why shareholders had not been allowed to purchase this unused stock.
In response, chief financial officer Julie Brown said the destruction of unsold inventory is something Burberry takes “extremely seriously”.
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