Home goods and apparel retailer Urban Outfitters Inc. said March 31 that it will furlough "a substantial number" of store, wholesale and home office employees for 60 days beginning April 1 due to store closures and lower overall demand resulting from the coronavirus outbreak.
Affected employees will continue to receive enrolled benefits during the furlough period, the Philadelphia-based company said.
In addition, Urban Outfitters will also cut its senior leadership compensation during the furlough period, eliminate directors' cash compensation for the remainder of fiscal 2021 and suspend stock repurchases.
The owner of Anthropologie stores said it also suspended hiring, eliminated bonuses for fiscal 2021 and borrowed $220 million.
It also plans to reduce investments in growth initiatives such as its Nuuly monthly rental subscription service and expansion into China, among other measures to protect its financial position amid the coronavirus situation.