Macy’s Inc. announced that its stores, which have been closed since March 18 due to the coronavirus, will remain closed until “we have a clear line of sight on when it is safe to reopen.”
The company also announced that the “majority” of its employees will go on furlough beginning this week.
“While the digital business remains open, we have lost the majority of our sales due to the store closures,” the company said. “We’ve already taken measures to maintain financial flexibility, including suspending the dividend, drawing down our line of credit, freezing both hiring and spending, stopping capital spend, reducing receipts, canceling some orders and extending payment terms, and we are evaluating all other financing options.
“While these actions have helped, it is not enough. Across Macy’s, Bloomingdales, and Bluemercury brands, we will be moving to the absolute minimum workforce needed to maintain basic operations. This means the majority of our colleagues will go on furlough beginning this week. There will be fewer furloughs in our digital business, supporting distribution centers and call centers so we can continue to serve our customers online. At least through May, furloughed colleagues who are enrolled in health benefits will continue to receive coverage with the company covering 100% of the premium. We expect to bring colleagues back on a staggered basis as business resumes.”
Photo courtesy Macy’s
