Nordstrom in new moves to shore up liquidity; cancels more orders
Nordstrom has taken more steps to strengthen its financial position as its stores remain closed during the COVID-19 pandemic.
The upscale department store retailer amended its $800 million revolving line of credit and closed on its 8.75% secured debt offering of $600 million.
“These actions provide additional liquidity and flexibility in response to uncertainty related to the novel coronavirus (COVID-19,” the company stated.
Nordstrom exited fiscal 2019 with $850 million in cash. In previous actions in response the pandemic, Nordstrom said it was suspending quarterly cash dividends and share repurchases and executing further reductions of more than $500 million in operating expenses, capital expenditures and working capital, including ongoing efforts to realign inventory to sales trends. (The retailer canceled all full-price orders for April and May delivery and has also decided to do the same for June and July, reported WWD.)
“The actions we are taking are to position ourselves best for our employees, customers and shareholders. This includes proactive steps to strengthen our financial flexibility, including our recent debt offering,” said Anne Bramman, CFO, Nordstrom. “These measures will provide Nordstrom with additional liquidity and flexibility not just for the short-term but over the longer term as we emerge from this unprecedented time.”