'Reputation risk' | The 'flip side' to Primark's £121m furlough cash return

Over the past week, fast fashion retailer Primark has hit headlines after the firm’s owner Associated British Foods (ABF) announced it would repay £121million in furlough money claimed under government retention schemes.

It’s a move that will likely be favourably received, as the retailer revealed that it had made the decision to make the repayments despite a slump in profits as a result of store closures amid the Government-imposed lockdown period.

Dominic McGregor, Founder & COO Social Chain, praised Primark for this decision. He wrote on LinkedIn: “This is exemplary behaviour from Primark and they set the benchmark high for other companies who might be in a similar position. Amazing to see.”

While this move will help to build a positive reputation for the brand – a notion supported by Chris Leadley, Marketing Manager at Forbes Burton, who previously told HR Grapevine that it “will certainly generate an immediate amount of goodwill with their customers” – others have suggested that there is a “flip-side” to this decision.