Duluth Holdings Inc. said it re-opened 20 retail stores on Monday where COVID-19 restrictions have been lifted and are preparing to re-open the balance as other states lift their pandemic mandates

Other business updates include:

  • Partnership with American Red Cross to donate a portion of proceeds on key apparel items
  • Launched new women’s campaign celebrating “forge their way” inspirational women
  • Amended and expanded line of credit closed on April 30
  • Partnered with landlords, suppliers and vendors to materially reduce costs, extend payment terms and cancel merchandise receipts to improve projected cash flow

“Since the beginning of the COVID-19 pandemic, we were proactive in taking difficult actions to safeguard the long-term health of our company. First and foremost, we protected the health and well-being of our employees, customers and suppliers, and also took measures to ensure our financial resiliency. As announced on March 20, we closed our 62 retail stores nationwide in compliance with state and local COVID-19 regulations. Today, we are re-opening 20 retail stores to customers in states that have lifted mandates on store closures. In addition to taking extra precautions for our staff and customers, most of our stores are free-standing with ample parking, which will help us diligently maintain local health and safety guidelines,” said Steve Schlecht, executive chairman and chief executive officer of Duluth Trading.

Schlecht added, “With our omnichannel model, we are fortunate to have a strong online presence where we can provide uninterrupted and outstanding service to our customers. We continue to fulfill online orders from both warehouse and store inventory through our ship from store process as well as contactless curbside pickup at certain store locations. Finally, we are proud to partner with the American Red Cross, an outstanding organization that is always on the front line of every crisis.”

American Red Cross
Duluth Trading is proud to announce a new partnership with the American Red Cross for the month of May. To help the American Red Cross continue to deliver its lifesaving mission nationwide due to the COVID-19 public health emergency, the company has selected key products to donate 5% of the purchase price to the humanitarian organization through May 31, 2020. Donations designated to the Coronavirus Outbreak will be used to help the American Red Cross maintain a sufficient supply of blood as well as supplies to equip volunteers and staff with protective equipment, food, shelter and relief supplies as they respond to people in need.

New Women’s Campaign
New products are key to the long-term growth of Duluth Trading. To that end, the company recently launched its new women’s campaign celebrating the achievements of real-life women who “forge their way.” The inaugural campaign is led by a new brand anthem video ringing in the powerful stories of inspirational women – tattoo artists, pilots, dirt bikers, potters, ranchers, and more. Filmed by a majority of female creative and production crew, the campaign reinforces Duluth Trading’s overall philosophy of creating apparel that stands up to any challenge and prioritizes freedom of movement, durability and performance of two of its bestselling products, Fire Hose Pants and No Yank Tanks.

Liquidity Update
The company negotiated an incremental delayed draw term loan of $20.5 million that will be available to be drawn before April 29, 2021 and also amended its loan covenants to allow for greater flexibility during its peak borrowing periods this year. Measures to manage cash flows and other expenses that were previously disclosed in its April 10th press release have been implemented and are expected to lead to cost savings and a sizable reduction in its cash burn due to the temporary store closures. The company’s liquidity position as of May 4, 2020 has improved since April 10 with $85 million outstanding on its line of credit, $7 million of cash on its balance sheet and an additional $20.5 million of borrowings now available on its $150 million credit facility. The company’s capital expenditure plans for 2020 have been cut in half and are expected to be close to $15 million.

Photo courtesy Duluth Trading