Macy’s is expected to furlough a “majority” of their 130,000 store employees nationwide, including the Westfield Valencia Town Center location, after closing due to coronavirus, officials said Monday.
The COVID-19 outbreak continues to take a “heavy toll” on Macy’s, Inc. business, the company said in a statement.
“Our top priority is the health and safety of our customers, colleagues and communities during this unprecedented crisis,” the statement said. “All of our stores have been closed since March 18 and will remain closed until we have clear line of sight on when it is safe to reopen.”
While the digital business remains open, Macy’s has lost the majority of sales due to the store closures, according to the company.
“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,” the statement said.
While these actions have helped, it is not enough, according to Macy’s officials.
“Across Macy’s, Bloomingdales and Bluemercury brands, we will be moving to the absolute minimum workforce needed to maintain basic operations,” the company said. “This means the majority of our colleagues will go on furlough beginning this week.”
See Related: Macy’s, Nordstrom To Close Stores Due To Coronavirus
There are expected to be fewer furloughs in the digital business, supporting distribution centers and call centers so officials can continue to serve customers online, according to the company.
At least through May, furloughed colleagues who are enrolled in health benefits are set to continue to receive coverage, with the company covering 100 percent of the premium, according to the statement.
“We expect to bring colleagues back on a staggered basis as business resumes,” the company said.
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Nor unexpected. As the days go by – we’ll be hearing the same news from many, many other retailers, large and small. Macy’s just drawn down it’s credit line – how many small businesses have access to that?
Retail closures will be the norm in the following days and months – and many more people out of work.
As I said in an earlier post – I don’t expect Macy’s/Bloomingdale’s to survive with any retail stores, and maybe, just maybe they might be left with an e-commerce platform.
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