Burberry Investors Question Destruction of $38 Million in Goods
After designing, manufacturing, marketing and sending their fashions down the runway, the last thing luxury companies want to think about is destroying them. Some Burberry Group Plc shareholders aren’t too happy about the practice, either. The London-based trench-coat maker physically destroyed finished products worth 28.6 million pounds ($38 million) in 2018, according to the company’s latest annual report . It’s also a matter of environmental concern to some investors, with one asking during Burberry’s annual meeting this week why shareholders couldn’t be given the chance to buy the items. John Peace, the outgoing chairman, said destroying stock is “not something we do lightly” and Chief Financial Officer Julie Brown said “we take it extremely seriously.” More cosmetics needed to be destroyed this year as Burberry’s beauty line was acquired by Coty, Brown said.