Given the uncertain duration of store and distribution center closings, Burlington Stores has temporarily furloughed most store and distribution center associates. The company will continue to provide benefits to furloughed associates, including paying their current health benefit premiums.
Michael O’Sullivan, CEO, Burlington, said, “Protecting the health and safety of our associates, customers and the communities that we serve is our top priority. Our stores and distribution centers remain closed temporarily, and will re-open when it is safe to do so. In response to the unprecedented circumstances that we face, we are continuing to take action across our business to best position Burlington for both the short and the long term.”
As part of its COVID-19 response, the company has taken the following additional short term actions: Burlington’s CEO, Michael O’Sullivan, will not take a salary, the company’s board of directors will forfeit their cash compensation, and the company’s executive leadership team has voluntarily agreed to decrease their salary by 50%.
In addition, finalization of annual incentive bonus payments related to fiscal 2019 performance, as well as merit pay increases for fiscal 2020, have been delayed to later in the fiscal year after the company has more clarity regarding the impact of COVID-19.
As previously announced, the company has suspended its share buyback program and continues to carefully reduce inventory receipts, manage working capital prudently including delaying payables, cut capital expenditures, work closely with landlords on the timing of rent payments, and aggressively reduce operating expenses during this period.