Primark announces that it "does not intend" to accept £30m job retention bonus

A national fashion chain has said that it will not be accepting a £30m bonus from the UK government.

Primark, which is owned by Associated British Foods, announced that it will not be taking advantage of the government’s job retention scheme, which pays employers to retain staff after bringing them back from furlough.

Around 30,000 of Primark’s staff were furloughed due to coronavirus, meaning that the company is eligible to receive a bonus of £30m.

Primark closed all of its stores in March, which it estimates cost it approximately £650m in net sales per month.

A spokeswoman for Primark said: “I can confirm that Primark does not intend to take advantage of support under the Job Retention Bonus announced by the Chancellor this week.

“The company removed its employees from government employment support schemes in the UK and Europe in line with the reopening of the majority of its stores.

“The company believes it should not be necessary therefore to apply for payment under the bonus scheme in current circumstances.”