Kohl’s Corp said on Monday it would extend the duration of closures across its fleet, revealing plans to draw down on its $1 billion revolving credit facility to weather the impact of the coronavirus pandemic.
The Wisconsin-based department store chain also said it would cut spending by about $500 million. In addition, the chief executive officer, Michelle Gass, will forego a salary, as the retailer finds ways to manage through the crisis.
"These are unprecedented times as our communities around the country come together to support the nationwide efforts in slowing the spread of Covid-19. At Kohl’s we are committed to doing our part as we extend the duration of our store closures to protect the health and safety of our customers and our associates,” said Gass.
“As a company, we operate with great discipline to maintain a strong balance sheet and financial flexibility. Given these extraordinary circumstances, we are taking difficult and decisive actions to strengthen our financial liquidity and secure the financial position of the company for the long-term benefit of our associates, customers, and shareholders.”
Kohl's said it would continue to provide existing health benefits to furloughed associates at this time, and those impacted may benefit from the recently passed coronavirus stimulus legislation.
The news coincides with a string of announcements made by U.S. retailers on Monday. Both Macy's and Neiman Marcus revealed store closures would continue across each respective retailer, amid the furloughing of thousands of employees, as retailers try to cut costs and soften the financial impact of Covid-19 on business.