British Billionaires Slammed After Botched Lockdown Response
British Billionaires Slammed After Botched Lockdown Response
(Bloomberg) --
Three of Britain’s best-known billionaires are battling a backlash over their response to the spread of coronavirus.
Richard Branson’s request for a government bailout, staff dismissals at Philip Green’s retail empire and Mike Ashley’s attempt to keep his sporting goods stores open in defiance of government guidance provoked furious responses from politicians and the public.
“Who on earth does Mike Ashley think he is,” Ian Lavery, chair of the opposition Labour Party, wrote in a tweet on Monday. “SHUT UP SHOP.”
Sports Direct reversed the decision the next day, but more criticism followed after reports the company had raised the price of home sports equipment on its website. A few days earlier, Green’s TopShop was slammed for temporarily cutting staff, while Branson faced a social media firestorm after Virgin Atlantic called for as much as 7.5 billion pounds ($8.8 billion) in U.K. aid for the aviation industry and appealed to its workers to take unpaid leave.
“The criticism is absolutely fair, and people are not going to forget what they did,” said Labour Member of Parliament Liam Byrne. “What we’re seeing on our streets is the absolute best of British, but unfortunately we’re now also seeing the worst of behavior from some of the most prominent business leaders.”
“Politicians from all parties will unite to make sure they get their reckoning when the dust has settled,” he added.
Stoking Resentment
The coronavirus pandemic has sharpened awareness of the disparity between rich and poor. While the wealthy have secured privileged access to testing kits and ventilators, ordinary workers are grappling with lost jobs and wage cuts, further stoking resentment toward the rich. The situation is similar in the U.S., where the .001% are among those echoing President Donald Trump’s call to relax social distancing measures faster than public health officials recommend to revive the economy.
The British trio, whose fortunes have tumbled by a combined $2 billion this year, aren’t the only ones in the U.K. to draw derision on social media.
Tim Martin, founder of pub chain JD Wetherspoon Plc, was criticized for saying that his bars would remain open. After the government mandated they close, he told workers they should consider taking jobs at supermarkets.
“If you’re offered a job at a supermarket many of you will want to do that,” he said in a video to employees. “Best of luck.”
Following the outcry, the London Chamber of Commerce and Industry, which represents 1,800 business across the capital, wrote to its members reminding them to “engage with the spirit of the new restrictions, and not just the letter.”
Musk, Ma
Some tycoons have done that, and more.
Chemicals giant Ineos, owned by Jim Ratcliffe, said it’s building a hand sanitizer plant that will produce a million bottles a month and will supply British hospitals for free. Tesla Inc.’s Elon Musk delivered 1,000 ventilators to Los Angeles this week. Jack Ma’s foundation has been sending masks and testing kits around the world.
Branson, too, tempered criticism with a blog post on Sunday that he’d invest $250 million in Virgin Group to support operations hit by the virus and a growing recognition that Virgin Atlantic’s measures, which were largely backed by its employees, were necessary for an industry in almost complete shutdown.
“This is the most significant crisis the world has experienced in my lifetime,” he wrote. “We can hopefully emerge and thrive with as many jobs as possible intact once the situation stabilizes.”
Soccer Tickets
Green’s Arcadia sought to mitigate the fallout.
“In line with many other retailers the group has made the difficult decision to close,” the company said in a statement Friday. “All store staff remain employees during this time and will be paid their normal pay for March.”
Ashley, however, has stoked further outrage, kickstarting a furor among fans of his soccer club, Newcastle United, which started taking payment for tickets for next season even as uncertainty swirls about when the English Premier League will restart.
“We find it incredibly disturbing that the club continues to take payments from supporters during these extremely difficult times,” said the Newcastle United Supporters Trust.
Ashley, who didn’t reply to requests for comment, apologized in an open letter Friday for attempting to keep his retail stores open.
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