Ross Stores Inc. said it will temporarily furlough the majority of its store and distribution center employees, as well as some other employees across the business, starting April 5, and until operations can resume in those areas. Top executives will also take pay cuts.
Both moves are designed to increase financial liquidity and flexibility with limited visibility on when stores will be able to reopen.
Rentler, chief executive officer, commented, “Our decision to furlough associates was difficult but necessary as we navigate through this unprecedented situation. As we take this step, Michael Balmuth, chairman of the board, and I will receive no salaries. Our senior executive team has also agreed to take substantial salary cuts during this period, with smaller salary reductions cascading down to all associates through a certain level. In addition, the company’s outside board members have agreed to forgo their cash retainer.”
Rentler concluded, “Our objective with these actions today is to strengthen our ability to navigate through the challenges and uncertainty created by the COVID-19 pandemic for communities and businesses across the country. Our stores remain closed to help prevent the further spread of the coronavirus and as we prioritize the health of our associates and our customers. The goal is to safely reopen our stores as soon as we are able and return to our mission of providing great bargains for our customers.”
All Ross Dress for Less and dd’s DISCOUNTS locations have been closed since March 20. The Company had been hoping to reopen stores by April 4. Unfortunately, Ross Stores said the increasing spread of the coronavirus prevents it from doing so.
