ASCENA RETAIL GROUP PROVIDES ADDITIONAL BUSINESS UPDATE ON COVID-19
Due to the uncertain environment, the Company made the extremely difficult decision to implement a furlough program across its business, including all store associates and close to half of its corporate associates. During this time, furloughed associates who are participating in any of the Company’s medical benefit plans will keep those benefits.
In addition to the furlough program, the Company announced temporary reductions in the base salaries of all corporate associates above a certain salary beginning this week. The base salaries of
Distribution centers will remain open at this time, operating at limited capacity to service the Company’s eCommerce business. The Company’s priority is the safety and well-being of its associates and it will follow all federal, state and local regulations in its distribution centers, including the assignment of associates to staggered shifts, increased cleaning, and the separation of work stations by at least six feet. The Company is deeply grateful to its distribution center associates for their continued dedication and support, as they are a critical part of the Company’s ability to navigate through this crisis.
In addition to these measures, the Company is reducing costs, capital expenditures, inventory commitments, and assessing vendor payment terms. During this period, the Company is also evaluating all options available to preserve its ongoing operations.
The Company will reassess its position on all of these decisions on an ongoing basis and will react accordingly.
Certain statements or information made within this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially. Forward-looking statements are statements related to future, not past, events, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” “will,” “would,” “estimate,” “forecast,” “target,” “preliminary,” or “range,” including, without limitation, compensation of the Company’s executive officers and other impacts of the COVID-19 pandemic on the Company’s business. The Company does not undertake to publicly update or review its forward-looking statements even if experience or future changes make it clear that our projected results expressed or implied will not be achieved. Detailed information concerning a number of factors that could cause actual results to differ materially from the information contained herein is readily available in the Company’s most recent Annual Report on Form 10-K and subsequent filings with the
About ascena retail group, inc.
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|CONTACT:||For investors:||For media:|
|ascena retail group, inc.|
|Managing Director||Corporate Communications|
|(646) 277-1214||(212) 541-3418|
|Senior Vice President|