Burberry reportedly burned $37 million worth of luxury goods

Luxury fashion brand Burberry is being slammed for destroying around $37 million worth of goods over the last year.

The information came out during the company’s annual meeting last week, The London Times reported.

Stockholders reportedly questioned the staggering number — which equates to approximately 20,000 of the brand’s iconic trench coats — asking why the products weren’t offered to the company’s private investors.

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A Burberry spokesperson told Fox News the brand has “careful processes in place to minimize the amount of excess stock” produced, but when disposal is necessary, they do so in a “responsible manner.”

The overflow of goods are apparently burned, though the company said it uses “specialist incinerators that are able to harness the energy from the process,” the Times reports.

“On the occasions when disposal of products is necessary, we do so in a responsible manner and we continue to seek ways to reduce and revalue our waste,” the company spokesperson said.

Burberry, which has disposed of around $118 million worth of goods over the last five years, allegedly does so in order to maintain the brand value by keeping the designer label from being worn by the “wrong people” after showing up on the “grey markets” for a discounted price, industry insiders told the Times.

The company did admit to more products being destroyed last year than usual because the brand’s beauty line was acquired by the American beauty conglomerate Coty.

burberry 2 istock

Among the products destroyed were cosmetics from the company's beauty line, which was sold to Coty.  (iStock)

However, Burberry isn’t the only one in the fashion industry to partake in such practices. Both H&M and Richemont, which owns Cartier and Montblanc, have also been known to destroy excess product, according to the Times.

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Despite their reasoning and the method used, many on social media criticized Burberry for the “utterly disgraceful” practice.

Michelle Gant is a writer and editor for Fox News Lifestyle.