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Genesco reduces headcount in Middle Tennessee offices
13 Apr 20 2 min read
Genesco Inc, a US-based speciality retailer, has announced the additional steps to reduce expense, capital and inventory levels to mitigate the impacts of Covid-19 and improve liquidity. The company has furloughed its employees and reduced the headcount in its Middle Tennessee area corporate offices, call centres and distribution centres.
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The company’s announcement included: the furloughed employees will continue to receive company-offered health care benefits and Genesco will pay both employee and company premiums. Combined with the store and other furloughs already announced, the company has reduced its workforce by 90 per cent. In addition, more highly compensated employees will have their pay reduced based on a graduated scale and certain employee benefits, including 401(k) matching, will be temporarily suspended; the company's UK-based Schuh business has announced that, effective April 3, 2020, it has reopened its e-commerce operations in compliance with government health and safety practices.
The actions previously announced, include: on March 27, 2020, Genesco announced that its 1,480 North American and UK stores, after being closed earlier in March, would remain closed until it can safely reopen for employees and customers; Genesco also announced at that time that it implemented furloughs for 3,000 full-time store employees in North America, and 3,500 store, corporate office and distribution centre employees in the UK; executive chairman Robert J Dennis will not receive a salary, and the board of directors will also forego their cash compensation in support of the company's cost cutting efforts.
As a result of these and other cost reduction actions, including those relating to real estate and supply chain, the company believes its cash reserves are sufficient to meet its needs, even if stores remain closed for several months.
"These are extraordinary times for our company and the markets in which we operate. We have had to make very difficult decisions in response to this crisis, the ones relating to our passionate and outstanding people, who are the driving force behind our businesses, were the most difficult of them all," Mimi E Vaughn, Genesco president and chief executive officer, said in a press release. "We have exceptional brands and retail businesses with strong strategic positioning, and we look forward to welcoming our employees and customers back in our stores as soon as we can safely return."
Fibre2Fashion News Desk (JL)
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