Business
Amid COVID-19 Developments, The Lovesac Company Extends Store Closures and Enhances Financial Flexibility
STAMFORD, Conn., April 01, 2020 (GLOBE NEWSWIRE) -- The Lovesac Company (Nasdaq: LOVE) today provided an update on its response to COVID-19. Shawn Nelson,
About this update from The Lovesac Company
[{"type":"text","content":"STAMFORD, Conn., April 01, 2020 (GLOBE NEWSWIRE) -- The Lovesac Company (Nasdaq: LOVE) today provided an update on its response to COVID-19.\n Shawn Nelson, Chief Executive Officer, said, “The health and safety of our associates, customers and communities remain of utmost importance during the evolving COVID-19 pandemic and as such, we are temporarily extending our showroom closures while we continue to serve our customers through our robust e-commerce platform. We are also aggressively managing all expenses, which includes difficult decisions on headcount reductions of part time employees, working capital and capital expenditures to preserve our financial health and flexibility while also ensuring our readiness to resume full operations when conditions permit.” Extending Temporary Showroom ClosuresWith the safety and well-being of its associates, customers and communities in mind, all showroom locations will remain closed until further notice. The Company will follow the guidance of local, state and federal governments, as well as health organizations, to determine when it can safely reopen its showrooms. Customers can continue to shop online at www.lovesac.com where, as always, each order ships for free and comes backed by the Company’s 60-day, risk-free, home trial. Increasing Financial FlexibilityIn response to the current business environment created by the COVID-19 pandemic, the Company is implementing multiple actions to significantly reduce expenses, working capital and capital expenditures. These include a reduction in workforce of approximately 445 part time employees (representing 57% of total company headcount) as well as a temporary reduction in executive cash compensation. Cash compensation will be reduced by 20% for Shawn Nelson, Chief Executive Officer, Jack Krause, President and Chief Operating Officer, and Donna Dellomo, Executive Vice President and Chief Financial Officer. The base salaries of all other senior management and full-time headquarter team members will be temporarily reduced by graduated amounts. The Board of Directors has also agreed to a temporary reduction of its retainer and monitoring fees and an extension of the associated payment timeline. As of April 1, 2020, the Company had approximately $40 million in cash and $10 million in availability on its revolving line of credit and no outstanding ...