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Kohl's extends duration of temporary store closures
01 Apr '20
2 min read
Pic: Kohl's
In its ongoing support to slow the spread of COVID-19, Kohl’s, a leading American department store retail chain, has announced that it will extend the duration of its temporary store closures until further notice. Due to the significant impact to the business, Kohl’s is taking additional actions to strengthen its financial flexibility during this time.
As previously announced, Kohl’s provided two calendar weeks of pay to all store and store distribution centre associates. Given that the company will be extending the duration of store closures until further notice, Kohl’s will temporarily furlough store and store distribution centre associates, as well as some corporate office associates whose work has been significantly reduced by the store closures. The company will continue to provide existing health benefits to furloughed associates at this time, and those impacted may benefit from the recently passed coronavirus stimulus legislation, according to a press release by Kohl’s
As part of the COVID-19 response, the company is taking various actions to preserve financial liquidity and financial flexibility. It will decrease capital expenditures by approximately $500 million, manage inventory meaningfully lower to align with anticipated sales, significantly reduce expenses across the business including marketing, technology and operations while stores remain closed, temporarily suspend share repurchases and evaluate its dividend programme, and fully draw down its $1 billion revolving credit facility.
“These are unprecedented times as our communities around the country come together to support the nationwide efforts in slowing the spread of COVID-19. At Kohl’s we are committed to doing our part as we extend the duration of our store closures to protect the health and safety of our customers and our associates. As a company, we operate with great discipline to maintain a strong balance sheet and financial flexibility. Given these extraordinary circumstances, we are taking difficult and decisive actions to strengthen our financial liquidity and secure the financial position of the company for the long-term benefit of our associates, customers and shareholders,” Michelle Gass, Kohl’s chief executive officer said.
As previously announced, Kohl’s provided two calendar weeks of pay to all store and store distribution centre associates. Given that the company will be extending the duration of store closures until further notice, Kohl’s will temporarily furlough store and store distribution centre associates, as well as some corporate office associates whose work has been significantly reduced by the store closures. The company will continue to provide existing health benefits to furloughed associates at this time, and those impacted may benefit from the recently passed coronavirus stimulus legislation, according to a press release by Kohl’s
As part of the COVID-19 response, the company is taking various actions to preserve financial liquidity and financial flexibility. It will decrease capital expenditures by approximately $500 million, manage inventory meaningfully lower to align with anticipated sales, significantly reduce expenses across the business including marketing, technology and operations while stores remain closed, temporarily suspend share repurchases and evaluate its dividend programme, and fully draw down its $1 billion revolving credit facility.
“These are unprecedented times as our communities around the country come together to support the nationwide efforts in slowing the spread of COVID-19. At Kohl’s we are committed to doing our part as we extend the duration of our store closures to protect the health and safety of our customers and our associates. As a company, we operate with great discipline to maintain a strong balance sheet and financial flexibility. Given these extraordinary circumstances, we are taking difficult and decisive actions to strengthen our financial liquidity and secure the financial position of the company for the long-term benefit of our associates, customers and shareholders,” Michelle Gass, Kohl’s chief executive officer said.
Fibre2Fashion News Desk (GK)
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