Genesco Announces Furloughs, Cuts Pay And Employee Benefits Amid COVID-19

(RTTNews) - Announcing additional actions in response to impact Of COVID-19, footwear retailer Genesco Inc. (GCO) announced Monday proactive steps in its efforts to significantly reduce expense, capital and inventory levels to mitigate the negative financial and operational impacts of COVID-19 and improve liquidity.

The company furloughed employees and reduced headcount in its Middle Tennessee area corporate offices, call centers and distribution centers. Furloughed employees will continue to receive Company-offered health care benefits and Genesco will pay both employee and company premiums. The company has now reduced its workforce by 90%.

In addition, more highly compensated employees will have their pay reduced based on a graduated scale and certain employee benefits, including 401(k) matching, will be temporarily suspended.

The company's U.K.-based Schuh business has also announced that, effective April 3, 2020, it has reopened its e-commerce operations in compliance with government health and safety practices.

As a result of these and other cost reduction actions including those relating to real estate and supply chain, the company believes its cash reserves are sufficient to meet its needs, even if stores remain closed for several months.