With its stores temporarily closed, Urban Outfitters said it will suspend the payment of rent temporarily and delay or cancel some planned new store openings.
In announcing its decision to suspend payments, Urban Outfitters joins The Cheesecake Factory; the only other national chain that has gone public with plans to do so. In addition, Urban Outfitters detailed a list of other measures is it taking to protect its financial position and increase financial flexibility during the COVID-19 crisis, including adjusting inventory levels by cancelling or delaying many orders and asking for price concessions on those remaining.
Urban Outfitters also is furloughing a substantial number of store, wholesale and home office employees for 60 days beginning 1 April. Impacted employees will continue to receive enrolled benefits during the furlough period.
“This is the first time in our 50-year history we have furloughed employees. It’s a painful decision that we do reluctantly,” said Richard A. Hayne, CEO, Urban Outfitters. “We understand the above measures are extreme, but they are unavoidable. While our company is strong and our long-term future is bright, we must take these proactive steps now to ensure the greatest degree of financial flexibility to best protect our employees, customers and shareholders.”
