Premier (AX:PMV) takes U-turn on keeping Jobkeeper funds

Company News

by Michael Luu

Fashion retail giant Premier Investments (ASX:PMV) has reversed its plan to retain $15.6 million from the JobKeeper scheme, following strong sales performance.

The ASX-listed retailer in March revealed the intention to save the subsidised money as a back-up fund for possible lockdown contingencies. The statement came under criticism from advocates calling for well-performing corporations to return their subsidy payments.

The company had accessed coronavirus-relief funds of $70 million from the Tax Office to support its 9000 eligible staff during the first phase of the JobKeeper scheme.

However, vibrant trading activity at stores across Queensland and Western Australia after reopening has convinced retail tycoon Solomon Lew to take a U-turn on his stance.

The owner of Smiggle and Jay Jays updated investors and tax authorities, “Increased trading from the combined States has fully offset the cost of supporting our teams through these lockdowns.”

The fashion retail empire was under pressure from economic lobbyists and parliament members to refund the full net benefit from the JobKeeper 1 package to the government, following reports of its first half profits rebounding by almost 100 per cent.

Shares in Premier Investments (ASX:PMV) last traded at $26.29


 

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