Friday, 27 March 2020 19:49

Bath & Body Works | L BRANDS PROVIDES ADDITIONAL UPDATE RELATED TO COVID-19 PANDEMIC

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COLUMBUS, Ohio, March 27, 2020 (GLOBE NEWSWIRE) -- L Brands, Inc. (NYSE: LB) today provided additional updates on actions it is taking, following its initial March 17, 2020 announcement related to the novel coronavirus pandemic (COVID-19).

Updated: March 27, 2020

Dear Associates, 

The current global pandemic and the consequential economic hardship that our country and the world is now experiencing is unprecedented in my lifetime.  None of us has experienced something of this magnitude.  

Unfortunately, it has become clear that we will not be able to reopen our stores on March 30. And we can’t speculate on when we will return to full operations … it’s just too uncertain … especially with regard to federal, state and local government decisions.  With that uncertainty we are forced to make tough decisions … really tough decisions … to assure that our business can emerge strong when this is all over. With that, today we are announcing: 

  • The entire board, including me, will temporarily suspend our cash compensation.     

  • Senior Vice Presidents and above will be taking a temporary 20 percent reduction in base compensation beginning April 5.   

  • We will be deferring annual merit increases.   

  • We are suspending our quarterly cash dividend beginning in the second quarter of fiscal 2020. 

  • We are executing a substantial reduction in expenses and capital expenditures.  

  • And the toughest decision of all … we will be furloughing hourly associates who support the businesses that are not operating at this time.  

  • Impacted associates include: 

    • Victoria’s Secret, PINK and Bath & Body Works stores: All associates below Store Manager. 
    • All field Asset Protection Investigators. 
    • Distribution Centers that are closed – DC2, DC4, DC6, DC7, DC8 – and Processing Centers: All associates below the Supervisor level.  
      • (DC1, DC3 and DC5 are open and operating, as is Shipping Building 1, our outbound shipping facility on Morse Road. The facilities team is also active and on-site.) 

  • Customer Care Center: All associates who do not have the capability to work from home.   

  • Home offices: All Café associates below Executive Chef Managers and All Campus Asset Protection Officers except for a small group needed to provide 24/7 support for on-going DC operations. 

  • Supervisors or HR leads will be connecting with everyone affected by this decision to get them the details of what this means for them. Impacted associates will continue to be paid through April 4. The furlough goes into effect April 5. 

Our decision to furlough associates rather than laying them off is a way to continue their existing benefits as we make every effort to bring our teams back to work as soon as possible. This approach also gives our furloughed associates the opportunity to apply for unemployment benefits, if eligible. 

Furloughing associates is one of the most heart-wrenching decisions we’ve ever had to make … but I know that we have to take these significant actions now – controlling what we can control – in order to help us weather this storm while providing some level of support to associates. 

I cannot underscore this enough … we are preparing in every way to get back to normal – as soon as humanly possible. 

Our board and leadership teams have been working diligently … and thoughtfully … and we all look forward to the time when this will be behind us – when we can deliver again in full force our world-class brands and merchandise to all our loyal customers.    

 Please take care of yourself and your family, 

 


Press Release

 

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