absence as the company attempts to navigate retail shopping during the pandemic.
The company temporarily closed its stores on 18 March, but announced today that all furloughed staff will receive coverage for health benefits until at least May.
In a press release, the company admitted that it is struggling for sales amid the pandemic.
“While the digital business remains open, we have lost the majority of our sales due to the store closures,” the statement read.
“We’ve already taken measures to maintain financial flexibility, including suspending the dividend, drawing down our line of credit, freezing both hiring and spending, stopping capital spend, reducing receipts, cancelling some orders and extending payment terms, and we are evaluating all other financing options.”
Macy’s Inc has just under five months’ worth of available cash, reports MarketWatch.
The department store admitted last week that it was already cancelling orders amid the pandemic. It added that it had taken measures in order to keep costs low.
A press release published last Wednesday confirmed that “all levels of management Director level and above” will receive a pay cut during the pandemic.
Macy’s stores will remain closed “until we have clear line of sight on when it is safe to reopen,” the statement read.
The company added: “We expect to bring colleagues back on a staggered basis as business resumes.”