Premier Investments says it will return JobKeeper payments taken during pandemic

A major retailer has pledged it will return millions in JobKeeper payments after mounting public pressure.

Retail giant Premier Investments has bowed to public pressure and returned JobKeeper payments raked in during the coronavirus pandemic.

On Monday, the retailer backed by billionaire Solomon Lew announced it would return $15.6m in JobKeeper payments it took while the job subsidy scheme was in place.

The company, which owns brands Peter Alexander, Smiggle and Jay Jays, said increased trading, particularly from a surge in online shopping, offset the impacts from store lockdowns, meaning it had no need for the funds supplied by the federal government.

Premier had previously resisted calls to return the wage subsidy.

Premier Investments chairman Solomon Lew and Premier Retail CEO Richard Murray. Picture: Aaron Francis/The Australian

“The Premier board, having regard to these outcomes, combined with the success of the commonwealth and state government’s management of COVID-19, has determined that it is now appropriate to refund the net JobKeeper benefit of $15.6m to the Australian Taxation Office,” the company said in a statement.

Premier’s network of franchises qualified for the scheme as a result of lockdowns impacting store openings during 2020.

However, public pressure had been mounting against the company to return the funds after it posted an interim profit of $188.2m, an 88.9 per cent jump on the same period last year.

Premier Investments owns brands Just Jeans, Peter Alexander and Smiggle. Photo by Asanka Ratnayake/ Getty Images

Dominos, Nick Scali and Toyota Australia have returned the wage subsidy to the taxpayer after posting profits.

Premier noted it remains confident in meeting its earnings before interest and tax target of $318m.

Federal Labor MP Andrew Leigh said the amount Premier Investments returned to the taxpayer could be more.

“Premier Investments haven’t disclosed their full JobKeeper receipt, but it could be as much as $110m,” he said.

Federal Labor MP Andrew Leigh said the amount Premier Investments pays back could be more. Picture: Joel Carrett/ AAP.

“Premier could afford to pay their millionaire CEO a multi-million-dollar bonus and pay shareholders a generous dividend, they can certainly afford to return to Australian taxpayers every single dollar of JobKeeper,” he said.

“It’s the only decent thing to do.”

Premier noted the JobKeeper payment had been fundamental in keeping Australia’s economy afloat during the pandemic.

Originally published as Premier Investments says it will return JobKeeper payments taken during pandemic