VF to Draw Down $1 Billion From Credit Facility, Cuts CEO's Pay by 50%
April 07 2020 - 8:03AM
Dow Jones News
By Dave Sebastian
VF Corp. said it is drawing down the remaining $1 billion
available under its revolving credit facility to preserve its
liquidity amid the coronavirus pandemic and is pausing its
share-buyback program.
The owner of outdoor and workwear brands such as Vans and
Timberland said Tuesday it still plans to divest its occupational
workwear business and is engaged with prospective buyers. It also
said it plans to regularly pay scheduled dividends.
For the next four months, the company said it is cutting its
chief executive's pay by 50% and the executive leadership team's by
25%. Board members will also forgo their cash retainer during the
period, VF said.
In North America, VF offices and stores remain closed until May
3, while employees will continue to receive full pay and benefits,
the company said.
In Europe, the Middle East and Africa, offices are expected to
reopen after May 3, while stores will remain closed until further
notice, VF said. The company said it is temporarily reducing
working time for employees while keeping their salaries at or above
95% of normal pay for office-based, wholesale and
distribution-center associates, while store employees will receive
full pay.
In Asia Pacific, VF said its offices are closed, but stores have
reopened in mainland China and other parts of the region.
At its distribution centers, VF said it is providing up to 14
days of emergency pay for employees in the U.S. and Canada.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
April 07, 2020 07:48 ET (11:48 GMT)
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