“Run For Your Life”: Ex-Employees Bare Aritzia’s Discriminatory And Exploitative Culture
Aritzia (TSX: ATZ), the prominent fashion brand celebrated for its chic appeal and high-profile clientele, has come under scrutiny following allegations of discriminatory practices and fostering a culture of fear, according to accounts from former employees in a Business Insider piece. Founded and led by Brian Hill, the multibillion-dollar company’s success is undeniable, but some ex-staffers claim that its achievements were overshadowed by the dark side of its operations.
The Vancouver-based company’s expansion under Hill’s leadership has been remarkable, with Aritzia earning a reputation as Zara’s sophisticated counterpart, catering to customers seeking minimalist, luxury garments. Over a span of 38 years, he ruled Aritzia into a fashion giant that amassed revenue of $2.2 billion last year, as reported by Euromonitor International.
It currently holds the position of Canada’s fifth-largest retailer in the footwear and apparel industry. Celebrities such as Kendall Jenner, Meghan Markle, and Jennifer Lopez further enhanced the brand’s allure.
However, behind the glamour, several former employees disclosed a high-pressure and exploitative work environment. According to accounts from five individuals who were employed at retail stores in Ontario from 2005 to 2019, their managers requested them to rate their own or their colleagues’ appearances on a scale of one to ten during daily meetings. Additionally, there was immense sales pressure, with a former retail employee disclosing an incident where she was asked to work despite having a gash on her forehead that needed stitches.
Disturbingly, it was highlighted that Black women faced racial discrimination, with two former style advisors recounting instances where their manager asked them to make her coffee the same color as their skin.
Aritzia’s spokesperson denied these allegations, emphasizing the company’s commitment to maintaining an inclusive and welcoming environment. They cited statistics indicating 54% of Aritzia employees and 60% of retail employees identified as BIPOC within the organization, but declined to provide further details.
Reports from 53 current and former employees portrayed the 62-year-old Hill as a perfectionist who prioritized aesthetics, sometimes leading to outbursts and intimidating behavior. Several individuals likened the experience of working at Aritzia to psychological abuse. Allegedly, meetings were tense, and employees feared making mistakes or using incorrect language in presentations.
“I think a lot of people in that organization feel worthless,” a former employee said. “They have been berated and degraded for so long.”
According to Aritzia’s spokesperson, the company’s success can be attributed directly to its high-performance culture. They described Hill as an exacting CEO, similar to leaders of other highly successful global companies, but also highlighted his significant commitment to nurturing the careers and development of his employees.
“The allegations in this story are not representative of the company culture that Brian and his leadership team at Aritzia have fostered and built,” the spokesperson said, citing an employee survey conducted last October that showed “an impressive 77% of Aritzia’s employees would recommend working at the company to a friend or family member.”
The focus on appearances extended to the hiring process, with some ex-employees claiming that Hill had preferences for certain looks, especially when evaluating potential hires. A culture of rating appearances, using a framework called SMPS (style, motivation, personality, and smarts), allegedly existed, rating employees 1 to 10.
“Automatically, if you’re skinny, you’re not going to be below a seven,” a former retail employee said.
The spokesperson clarified that Aritzia has never instructed its boutique employees or managers to engage in such actions. They emphasized that this specific incident would be completely contrary to the company’s policies and values. But they also said that SMPS is no longer used by the company.
Furthermore, sales advisors reportedly faced intense competition, with sales per hour determining their shift assignments. Some employees admitted to resorting to questionable tactics to improve their sales numbers, leading to a cutthroat atmosphere within the stores.
“I always say if you make it long enough at Aritzia, you drank the jungle juice, and now you’re serving it to other people,” a former employee said.
A former benefits coordinator at Aritzia’s Vancouver support office filed a complaint with the British Columbia Human Rights Tribunal, alleging that the company discriminated against her based on her mental health. According to her account shared with Insider, her manager criticized her appearance, stating, “You don’t dress the part, you don’t look the part, you don’t speak the part.”
Subsequently, she took disability leave for her mental health in August 2021, only to be informed later that her termination was due to a restructuring. Her case is scheduled for mediation on August 8. In response, Aritzia’s spokesperson emphasized the company’s dedication to the well-being of its employees and its efforts to create an inclusive and supportive work environment.
In response to issues raised after the murder of George Floyd, Hill publicly pledged to address concerns and invest in diversity and inclusion programs. However, criticism continued, culminating in an anonymous letter criticizing the company culture. According to the letter seen by Insider, the author referred to Hill as “the primary abuser” and described him as a “bully” who had “successfully fostered a culture of fear and harassment.” The letter accused him of disrespecting his staff through “embarrassing tirades and shaming.”
Subsequent changes included limiting access to Hill during his more unscripted moments and reducing meeting sizes, though the company denied any connection between these actions and the letter.
Hill stepped down as CEO in 2022 but continues to be actively involved in certain aspects of the company, maintaining “full-time functional area leadership of Product, Marketing, Real Estate Development, and Business Development.” He remains Aritzia’s largest single shareholder.
Word about Aritzia’s reputation spread, and it had a significant impact in deterring at least one highly sought-after candidate. For a creative-director position, this individual was flown from New York to Vancouver for an interview. However, during his visit to the support office, an Aritzia employee recognized him and sent him a warning message on Instagram, advising him against accepting the job.
“It may seem like a nice opportunity,” he recounted the employee’s voice note, “but when you get here, you’ll realize it’s hell on earth.” He mentioned that she advised him to “run for your life.”
Information for this briefing was found via Business Insider and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
