To deal with the COVID-19 outbreak, Aaron’s has made changes to the operation of its namesake and Progressive Leasing divisions.
Aaron’s stores are shifting to e-commerce and curbside only services for all its corporate stores until further notice. Curbside services will encompass order processing, merchandise pickup, returns and payments. Aaron’s will continue to deliver items to homes as well, with orders delivered to customer doors. The company has suspended in-home installation services.
The Progressive division will continue to support the retail partners through which it operates, adapting to the needs of those that remain open for business. Progressive’s customer support, merchant support and customer payment assistance associates have been transitioned to work from home with all operations functioning remotely
John Robinson, Aaron’s president and CEO, said, “Over the last several weeks, we have been aggressively adapting our business in reaction to the ongoing COVID-19 pandemic while following the guidance of local, state and federal authorities. Our primary concern is the health and safety of our associates and customers. We are taking significant steps to reduce the risk of exposure, while continuing to provide our customers with the essential products they need such as refrigerators, freezers, mattresses and computers. We are adapting our operations to protect our associates while still serving our customers who need our products now more than ever.”
Robinson added, “While our balance sheet is conservatively capitalized, we have drawn $300 million on our revolving credit facility to bolster the company’s cash position. This revolver draw, combined with strong operating cash flow in the first quarter of the year, resulted in a cash balance of approximately $550 million as of March 15. In addition, we have $185 million of remaining availability on the revolver, which gives us access to further liquidity if needed.”
The company noted that it is withdrawing its full year 2020 financial outlook, previously issued on February 20, due to the uncertainties resulting from the pandemic.