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Apparel firm Lululemon fires employees for trying to stop thieves, CEO defends move after backlash

Washington Edited By: C KrishnasaiUpdated: Jun 06, 2023, 10:31 AM IST
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Lululemon CEO McDonald said that such a policy is in place “because we put the safety of our team, of our guest, front and centre. It’s only merchandise.” Photograph:(Reuters)

Story highlights

The incident occurred last month in Georgia’s Atlanta city in which three masked men blatantly robbed a Lululemon store located at Peachtree Corners

A Canadian-based multinational apparel company— Lululemon— is facing massive criticism after it fired two of its female employees for trying to stop the robbers from stealing the products.

The incident occurred last month in Georgia’s Atlanta city in which three masked men blatantly robbed a Lululemon store located at Peachtree Corners.

They were recorded stealing Lululemon’s high-priced athletic wear from tables and displays. One of the employees had filmed the incident.

What happened?

The clip, now viral, shows the robbers—who have reportedly struck the store at least a dozen times prior—momentarily standing in the store doorway and staring at the women before jumping back inside to snatch several more pairs of leggings.

Soon after the robbery, the employees— Jennifer Ferguson and Rachel Rogers—had called the police to report the incident.

However, the company fired them over a Zoom call for allegedly breaking the company’s policy by calling the cops.

"We didn't really feel very protected or know what else to do," Rogers told local TV station 11Alive on May 30.

"We are not supposed to get in the way," Ferguson told the outlet.

"You kind of clear path for whatever they're going to do. And then, after it's over, you scan a QR code. And that's that. We've been told not to put it in any notes, because that might scare other people. We're not supposed to call the police, not really supposed to talk about it."

They also did not receive severance pay, they claimed.

CEO's reaction 

However, Lululemon CEO Calvin McDonald defended the company in Friday’s interview to CNBC.

“Once a robbery occurs, workers are instructed to scan a QR code. And that’s that. We’ve been told not to put it in any notes, because that might scare other people. We’re not supposed to call the police, not really supposed to talk about it,” he said.

McDonald said that such a policy is in place “because we put the safety of our team, of our guest, front and centre. It’s only merchandise.”

“They’re trained to step back, let the theft occur, know that there’s a technology and there’s cameras and we’re working with law enforcement,” he told CNBC.

McDonald claimed that the two fired female workers — one of whom was an assistant manager — were not fired for reporting the robbery to the cops, rather because they didn’t abide by company policy, which says employees shouldn’t engage with thieves.

(With inputs from agencies)

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