Kohl's Extends Store Closures Indefinitely and Furloughs Some Staff

Kohl's has extended its store closures indefinitely and furloughed some staff amid the coronavirus pandemic. The retailer also said Chief Executive Michelle Gass will forgo her salary.
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Kohl's  (KSS) - Get Report said it was extending its coronavirus-induced store closings indefinitely while also furloughing store and store distribution center associates.

CEO Michelle Gass will forgo her salary during the closures as the company said it hoped to slow the spread of coronavirus by closing its stores. 

"These are unprecedented times as our communities around the country come together to support the nationwide efforts in slowing the spread of Covid-19," Gass said in a statement. 

"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."  

The company said it would continue to provide existing health benefits to furloughed employees. 

Kohl's averaged 122,000 employees in 2019, its SEC Form 10-K says. 

The retailer said that its online and direct-to-consumer businesses will still operate. 

"As a company, we operate with great discipline to maintain a strong balance sheet and financial flexibility," Gass said.

"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"  

The Menomonee Falls, Wis., company said it would cut capital spending by $500 million, temporarily suspend share buybacks and fully draw down its $1 billion revolving-credit facility. 

Kohl's said that it would be evaluating its dividend program. 

Kohl's shares closed Monday's session down 8.7% to $16.03.