HanesBrands increases balance sheet flexibility

03 Apr '20

2 min read

Pic: HanesBrands

HanesBrands, a leading global marketer of branded everyday basic apparel, has announced that it is proactively drawing down on its revolving credit facility as a precautionary measure to increase balance sheet flexibility during the Covid-19 global pandemic. The company also is withdrawing its guidance for the 2020 first quarter and full year.

The company is drawing down $630 million from its US revolving loan facility to further strengthen its cash position, which will provide the company with additional financial flexibility to manage its business with a safety-first emphasis during the unknown duration and impact of the Covid-19 outbreak.

The measures and precautions being taken by governments, retail partners, and consumers in countries across the world to limit the spread of Covid-19 are having a significant impact on the economic activity in each region of the company’s global business.

HanesBrands has further reported that it continues to monitor and adjust its business plans as necessary, including taking actions to protect employees, manage liquidity, reduce expenses, and serve customers and consumers.

HanesBrands issued first-quarter and full-year 2020 guidance on February 7, 2020, which excluded any impact from the spread of Covid-19. Due to the uncertainty and rapidly changing environment relating to the disease, the company is withdrawing the guidance for the first quarter and full year and is not providing an updated outlook at this time. The company expects to provide more information when it reports first-quarter earnings in May.

Fibre2Fashion News Desk (JL)

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