Lumber Liquidators makes cuts
Lumber Liquidators, the flooring specialty retailer, reported that it is continuing to provide products from 400 of its 420 stores.
In a business update from the Richmond, Va.-based company, Lumber Liquidators reported that many of its stores are operating as warehouse-only while offering curbside pickup and home or job site delivery options. All stores are operating under reduced hours and closed on Sundays.
The retailer also announced that it has made the decision to furlough approximately 300 store associates as it reduces hours at its distribution centers.
Employees impacted by the move will receive two weeks pay with the option of utilizing up to 80 hours of paid time off, Lumber Liquidators reported. The company said that it is paying the employee portion of benefit premiums for those impacted by the furlough beyond four weeks through the end of May 2020.
Other moves include a temporary reduction in all salaried employee compensation, including a 25% reduction in base pay for interim president Charles Tyson, CFO Nancy Walsh, and all C-level executives. A corresponding 30% reduction in cash compensation for the board of directors has also been put into place.
On April 17, Lumber Liquidators reached an agreement with its lenders to amend its senior secured credit facilities and has increased its senior asset-based revolving credit facility from $175 million to $212.5 million. The move increases the total availability of Lumber Liquidator’s senior secured credit facilities from $200 million to $237.5 million.
As Lumber Liquidators weathers the COVID-19 crisis, the company said that store managers are proactively engaging pro customers. Expanded phone and online access is being provided. The company has extended its return policy to an additional 60 days.
Lumber Liquidators reported that web traffic has “increased meaningfully” in recent weeks and the retailer is “adapting to the change in consumer behaviors.” The company is providing free online samples and has extended the hours for voice and click-to-chat customer support.
"The health and safety of our customers, employees and communities remains our top priority as we adjust our operations to respond to COVID-19, strive to meet the needs of our customers nationally and navigate the dynamic current environment," Tyson said. "Following state and local orders, we have implemented flexible operating models and robust safety measures in our stores and have temporarily closed our corporate office and call center and are operating effectively from remote locations.”
“We have also taken appropriate steps to preserve liquidity by reducing costs, managing inventory flow, deferring payments, and working with our lenders to temporarily expand our credit facility as we adapt to the evolving landscape,” Tyson noted.
Tyson was named interim president in February following the resignation of CEO and president Dennis Knowles.
In a business update from the Richmond, Va.-based company, Lumber Liquidators reported that many of its stores are operating as warehouse-only while offering curbside pickup and home or job site delivery options. All stores are operating under reduced hours and closed on Sundays.
The retailer also announced that it has made the decision to furlough approximately 300 store associates as it reduces hours at its distribution centers.
Employees impacted by the move will receive two weeks pay with the option of utilizing up to 80 hours of paid time off, Lumber Liquidators reported. The company said that it is paying the employee portion of benefit premiums for those impacted by the furlough beyond four weeks through the end of May 2020.Other moves include a temporary reduction in all salaried employee compensation, including a 25% reduction in base pay for interim president Charles Tyson, CFO Nancy Walsh, and all C-level executives. A corresponding 30% reduction in cash compensation for the board of directors has also been put into place.
On April 17, Lumber Liquidators reached an agreement with its lenders to amend its senior secured credit facilities and has increased its senior asset-based revolving credit facility from $175 million to $212.5 million. The move increases the total availability of Lumber Liquidator’s senior secured credit facilities from $200 million to $237.5 million.
As Lumber Liquidators weathers the COVID-19 crisis, the company said that store managers are proactively engaging pro customers. Expanded phone and online access is being provided. The company has extended its return policy to an additional 60 days.
Lumber Liquidators reported that web traffic has “increased meaningfully” in recent weeks and the retailer is “adapting to the change in consumer behaviors.” The company is providing free online samples and has extended the hours for voice and click-to-chat customer support.
"The health and safety of our customers, employees and communities remains our top priority as we adjust our operations to respond to COVID-19, strive to meet the needs of our customers nationally and navigate the dynamic current environment," Tyson said. "Following state and local orders, we have implemented flexible operating models and robust safety measures in our stores and have temporarily closed our corporate office and call center and are operating effectively from remote locations.”
“We have also taken appropriate steps to preserve liquidity by reducing costs, managing inventory flow, deferring payments, and working with our lenders to temporarily expand our credit facility as we adapt to the evolving landscape,” Tyson noted.
Tyson was named interim president in February following the resignation of CEO and president Dennis Knowles.