G-III Apparel Group Ltd. said that in response to the COVID-19 outbreak, it will be furloughing approximately 60 percent of its wholesale operations segment, effective April 6, 2020.
All wholesale business furloughed employees will continue to receive existing healthcare benefits with the company paying the employees’ share of healthcare costs. G-III said in a statement that “At this time, the company’s wholesale business requires a smaller workforce to execute on the critical activities of its business.”
The company also announced that effective March 30, 2020, management voluntarily agreed to temporary reductions in annual salaries. Morris Goldfarb, the chairman of the board and chief executive officer, and Sammy Aaron, the vice-chairman of the board and president, agreed to receive no salary. Wayne S. Miller, the chief operating officer and secretary, Neal S. Nackman, the chief financial officer, and Jeffrey Goldfarb, executive vice president and a member of the board of directors, each agreed to a 40 percent reduction in their annual salaries. Also, effective March 30, 2020, the base annual salaries of other senior personnel will be temporarily reduced by 10 percent to 40 percent, depending upon salary levels.
In its owned retail business, the company has provided ongoing pay and benefits to store employees impacted by the temporary store closures. Given the rapidly evolving environment and stay-at-home orders by government officials across the country, the company, in addition to the above-mentioned salary reductions, will be decreasing the number of its retail segment employees by over 80 percent through furloughs and staff reductions, effective April 6, 2020. All full-time retail business furloughed employees will continue to receive existing healthcare benefits with the company paying the employees’ share of healthcare costs.
Morris Goldfarb, G-III’s chairman and chief executive officer, said, “Over the years, we have successfully managed through many challenges. What we are navigating through today is unprecedented and rapidly evolving. I am confident in the actions we are taking to strengthen our financial flexibility to position us for future success. The furlough of many of our employees was one of the most difficult decisions we have had to make as an organization and one we did not take lightly. We look forward to bringing our furloughed employees back to work as soon as possible.”
Photo courtesy G-III Apparel