Sally Beauty will temporarily close its customer-facing store operations at all stores in the U.S. and Canada due to COVID-19 through at least April 9.
“Over the past few weeks, we have been assessing the developing COVID-19 situation carefully and responding to the evolving guidelines and restrictions which have been implemented by local and state authorities. As a result, a significant number of Sally and Cosmo Prof stores have been required to close over the last few weeks. In many cases, we have been required to cease all store operations. Where permitted, we have continued to operate through a contactless curbside pickup model. In addition, we have shifted our merchandising strategy to focus on needed hygiene and sanitation categories,” said Chris Brickman, president and CEO, Sally Beauty. “Despite these measures, we now believe it is time to proactively close all remaining retail and wholesale store fronts to customers until at least April 9th. Where permitted by regulation or local order, stores will transition to the curbside service model which allows customers to call their local store, place an order, and arrange a convenient, no contact, curbside pick-up at that store.
Sally Beauty Supply customers can also purchase needed products from the website and app. Customer orders in the U.S. will be serviced from inventory in the company’s national supply chain network, and the company is providing expedited access to further inventory by launching ship-from-store via UPS from approximately 300 Sally Beauty stockrooms nationwide.
In addition to store closures and related furloughs, the company has reduced its capital investments, will be temporarily idling several distribution centers and temporarily furloughing elements of the headquarter’s staff, in advance of a network restart. The company is providing its furloughed employees in the U.S. and Canada with two weeks pay and medical benefits.
The CEO and board of directors have reduced their pay by 50% for the duration of the COVID-19 crisis. Other senior leaders will also have significant reductions in salary for the same time period.
The company said it has access to a $500 million secured asset-based revolving line of credit, which expires in July of 2022. In support of its operations, and out of an abundance of caution, the company has drawn $395 million on this credit facility as of March 23.