Tilly’s, Journeys, Schuh Furlough Employees
More large industry customers announced major furloughs of employees and other cost cutting moves today.
Tilly’s said it has furloughed all non-management store associates and part of its corporate staff.
In addition, it has mostly closed its distribution center that services stores and furloughed “a significant” number of its management and staff at the warehouse.
The company is also identifying other expenses to cut.
Top management also agreed to share in the pain. Chairman and Co-founder Hezy Shaked will not take a salary; CEO Ed Thomas will forgo a salary in April and then take a temporary pay cut; and other members of the senior corporate staff will take pay cuts as well.
Tilly’s has a strong balance sheet, but also drew down the maximum amount on its credit line, $23.7 million. The company now has $122.4 million in cash available to help it through this crisis.
“We are certainly experiencing unprecedented times, and it breaks our hearts as a management team to have to furlough members of our outstanding family of highly engaged store associates, distribution staff, and corporate team members,” CEO Ed Thomas said in a statement. “We look forward to the day when we can welcome our team back home with confidence that better days will be ahead.”
Journeys, Schuh Cut Staff
Genesco, the parent company of important industry footwear customer Journeys, said today it is furloughing 3,000 full time store employees in North America.
In the UK, the company’s Schuh business, also an industry footwear customer, has had to shut its e-commerce distribution center as well as its stores.
As result, Schuh is furloughing 3,500 store and warehouse workers. The UK government will pay 80% of the salary costs for those employees.
Genesco CEO Mimi Vaughn and Executive Chairman Robert Dennis will receive no salary starting April 1. Vaughn’s direct reports will reduce their salaries by 50%.