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Capri Holdings to furlough 7,000 retail employees in North America

By Prachi Singh

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Management

In response to the continuous spread of coronavirus, Versace owner Capri Holdings has announced that the company anticipates reducing its corporate workforce in order to generate additional payroll savings. The company said in a statement that it now anticipates that retail stores in North America and Europe will be closed until approximately June 1, 2020 and so the company has decided furlough all of its approximately 7,000 North America retail store employees effective April 11. The company expects to require a smaller workforce as it resets its business post-COVID-19.

“The impact of COVID-19 on the world and the global economy is changing rapidly in ways we could not have anticipated,” said John D. Idol, the company’s Chairman and Chief Executive Officer, adding, “This is a very challenging time for our business. Given our size and scale, we believe that Capri is well-positioned to continue to operate its business despite this unprecedented situation.”

Michael Kors and Versace parent company furloughs employees amid coronavirus crisis

The company added that as of April 1, 2020, it had total cash and cash equivalents on its balance sheet of approximately 900 million dollars and that it has fully drawn the remaining 300 million dollars of availability under its revolving credit facility. The company has also taken further additional actions to preserve its cash flows and maintain its financial strength, including: Reducing board of director pay by 50 percent, John D. Idol, Chairman and Chief Executive Officer, Michael Kors, Chief Creative Officer of Michael Kors, Donatella Versace, Chief Creative Officer of Versace, and Sandra Choi, Chief Creative Officer of Jimmy Choo, have each voluntarily elected to forgo their salary for fiscal 2021. In addition, the company will be exploring opportunities to reduce overall salaries at various levels throughout the organization by approximately 20 percent.

The company has also decided to suspend the remaining 400 million dollars under its current share repurchase program.

Picture:Business Wire

Capri Holdings
Coronavirus
Jimmy Choo
Michael Kors
Versace