Kohl’s is extending the closing of its stores in the wake of the coronavirus and is furloughing 85,000 store and distribution center employees.
Michelle Gass, Chief Executive Officer, Kohl’s, said, “These are unprecedented times as our communities around the country come together to support the nationwide efforts in slowing the spread of COVID-19. At Kohl’s we are committed to doing our part as we extend the duration of our store closures to protect the health and safety of our customers and our associates.”
“As a company, we operate with great discipline to maintain a strong balance sheet and financial flexibility. Given these extraordinary circumstances, we are taking difficult and decisive actions to strengthen our financial liquidity and secure the financial position of the company for the long-term benefit of our associates, customers and shareholders,” Gass added.
As previously announced, Kohl’s provided two calendar weeks of pay to all store and store distribution center associates. Given that the company will be extending the duration of its store closures until further notice, Kohl’s will temporarily furlough store and store distribution center associates, as well as some corporate office associates whose work has been significantly reduced by the store closures.
The company will continue to provide existing health benefits to furloughed associates at this time, and those impacted may benefit from the recently passed coronavirus stimulus legislation.
As the company manages through this crisis, Michelle Gass will not take a salary.
Gass stated, “It is an incredibly difficult decision to extend our store closures and temporarily furlough some of our associates. We look forward to the day that we can reopen our stores to welcome our associates back and serve the millions of families across the country that shop Kohl’s.”
Kohl’s continues to serve millions of customers through its website and the Kohl’s App. In addition to ship to home, beginning on April 2, Kohl’s customers can now shop on its website and opt to pick up their items at most Kohl’s stores. Kohl’s will offer this new convenience for customers who prefer to pick up their online orders at their local Kohl’s store for free and within two hours of placing their orders.