La-Z-Boy Closes US Plans, Suspends Dividend, To Cut Pay Due To COVID-19

(RTTNews) - Residential furniture maker La-Z-Boy Inc. (LZB) Monday announced various actions in response to coronavirus or Covid-19 crisis. The company announced the temporary closure of its U.S. manufacturing facilities, effective immediately, to be re-evaluated on April 13.

The company also announced elimination of the June quarterly dividend and termination of the share repurchase program indefinitely to prioritize near-term financial flexibility.

Further, the company said it is in the process of closing all company-owned La-Z-Boy Furniture Galleries stores, with 130 of 155 stores currently closed. The company will also close its Regional Distribution Centers once in-process orders are delivered.

The company noted that customers at La-Z-Boy.com and Joybird.com may still place orders which will be delivered when operations resume.

Due to the temporary closures, the company announced the furlough of approximately 6,800 employees, or approximately 70% of its global workforce.

Further, it will cut 50 percent salary for senior management and 25% for salaried employees until further notice. Additionally, the board of directors will forego the cash portion of its compensation until further notice.

The company also announced a freeze of its 401(k) match, and elimination of all non-essential operating expenses and capital expenditures.

La-Z-Boy said it has almost $200 million in cash, cash equivalents, restricted cash, and has also proactively drawn $75 million under its $150 million revolving credit facility.

The company plans to report its fiscal 2020 fourth-quarter and full-year results in the second half of June.