VFC VF Corporation

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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