VF Corp announces additional COVID-19 measures

United States
Published:  08 April, 2020
Credit: Timberland

The footwear and apparel manufacturer, owner of the Timberland and Vans brands, said it is temporarily reducing executive salaries, while all global offices and retail stores are to remain closed until May 3, or until further notice.

Updates announced by VF Corp include temporarily reducing the base salary for CEO Steve Rendle by 50% during the next four months, and the base salaries for VF’s Executive Leadership Team by 25%. The VF’s Board of Directors are also to forgo their cash retainer for the next four months. All VF offices and retail locations across North America are to remain closed until May 3. Retail employees, and office-based employees working remotely, are to continue receiving full pay and benefits during this time.

In the EMEA region, VF offices are to remain closed until May 3 with employees working remotely, but retail stores will remain closed until further notice. To leverage various government support programs that have been made available across EMEA countries, VF said it has decided to temporarily reduce the working time for employees while keeping salaries at or above 95% of normal pay for office-based, wholesale and distribution centre associates, while retail employees will still receive full pay during this time. In the APAC region, many VF offices are to remain closed, with employees continuing to work remotely. However, most of the Group’s retail stores in the region, particularly Mainland China, have re-opened for business. All employees in the APAC region continue to receive full pay and benefits.

As part of VF’s Enterprise Protection Strategy, the Group said it is taking further actions to preserve its financial liquidity and maximise flexibility in order to successfully manage its business operations. As a proactive, precautionary measure, VF said it will draw down the remaining US$1 billion available under its current senior unsecured revolving credit facility, while it explores alternatives to further enhance financial liquidity and flexibility of its capital structure as it emerges from the COVID-19 pandemic. VF currently has approximately US$2.4 billion of cash on hand.

“These new actions position us to continue supporting our people while also taking prudent measures to protect the financial integrity of our company as we manage through the prolonged disruption caused by this global health crisis”, said Steve Rendle, Chairman, President and CEO, VF Corporation.