Genesco furloughed several employees at its corporate offices, call centers and distribution centers, slashing its workforce by 90 percent. More highly compensated employees will have their pay reduced. The group said it will continue to maintain health benefits for all furloughed employees. On a positive note, Genesco said that its U.K.-based Schuh retail business reopened its e-commerce operations on April 3.
Caleres granted leave of absence to its retail store employees, together with some of its teams at its distribution facilities and corporate operations. The St. Louis-based company did not reveal how many employees were affected, but said the remaining workforce would see a salary reduction. Caleres is keeping its Famous Footwear and branded locations closed until further notice. It is also taking more steps to preserve cash and bolster liquidity, including leveraging supply-chain relationships to reduce inventories and receipts, extending credit terms, deferring or cancelling capital investment projects, and postponing certain marketing efforts. However, e-commerce operations continue, offering drop-ship services for retail partners’ digital sales. To aid in the coronavirus fight, the firm also started making thousands of masks a day at its Allen Edmonds factory in Port Washington, Wisconsin.
Shoe Carnival closed all stores until further notice, saying it would continue to pay associates for the foreseeable future, while reducing senior management salaries and director compensation. It is also cutting operating and marketing expenses where possible, and working with vendors to reduce inventories and extend credit terms. It pointed out that the company’s e-commerce business has grown by triple-digits since the closure of stores.
Designer Brands has placed 80 percent of employees on temporary unpaid leave since March 29, and those remaining will have their pay reduced, including a 20 percent cut in the base salary of executives. Employee benefits, including medical, prescription, and dental benefits will continue in the meantime. All stores remain closed, but e-commerce operations continue to run.
Steve Madden has furloughed a “significant” number of workers from April 1, but all employees will continue to receive scheduled medical benefits. Meanwhile, staff who earn more than $100,000 annually will see their salaries reduced by graduated amounts. Founder Steve Madden, as well as chief executive Edward Rosenfeld will forgo their salaries. The management said it will suspend its quarterly cash dividend and stock repurchases, and has drawn $30 million from its credit facility.