Burlington Stores furloughs employees as stores remain closed
Burlington Stores Inc. is furloughing employees and its executives are taking pay cuts as the COVID-19 crisis continues.
The off-pricer announced it has furloughed most of its store associates and distribution center employees. Burlington will continue to provide benefits to furloughed workers, including paying 100% of their current health benefit premiums. In addition, the company has established a hotline to help employees gain access to government assistance programs from the recently passed fiscal stimulus package.
In other “short term” moves related to the pandemic, Burlington CEO Michael O'Sullivan will not take his salary and the chain’s executive leaders will take a 50% pay reduction. The board will forfeit cash compensation. Also, bonuses for fiscal 2019 and merit pay increases for fiscal 2020 have been delayed.
As previously announced, Burlington suspended its share buyback program and announced a bond deal valued at $300 million of notes that mature in 2025. The retailer said it is working closely with landlords on the timing of rent payments and is aggressively reducing operating expenses.