Caleres and Shoe Carnival expanded existing credit lines to ensure liquidity while stores remain closed during the Covid-19 pandemic.Shoe Carnival also eased the covenant on its credit agreement.

Caleres said that it has exercised a portion of the accordion feature on its asset-based revolving credit facility, increasing the available borrowing capacity by $100 million to $600 million. Following this exercise, Caleres said it has over $335 million of liquidity, including $175 million of cash, with no significant debt maturities until 2023.

Chief financial officer Ken Hannah said the increase in borrowing capacity, combined with ongoing efforts to reduce cash outflows, “will help ensure Caleres has adequate liquidity to weather the current economic shutdown.”

The company said it has maintained its cash position since starting to close retail stores in mid-March. Caleres has also reduced its 2020 capital spending budget by 40 percent compared to 2019 levels, to approximately $30 million.

Meanwhile, Shoe Carnival has exercised the accordion feature of a credit agreement to give it greater financial flexibility. As a result, its line of credit was increased from $50 million to $100 million. Shoe Carnival has no cash borrowing under that facility.

The company also eased its debt covenant, increasing the maximum ratio of funded debt plus three times rent expense to Ebitda plus rent expense from 2.5 to 1.0 to 3.0 to 1.0.

Chief executive Cliff Sifford said the company’s financial position was solid and the move was made “out of an abundance of caution.”