In light of federal, state and local regulations and the guidance of health authorities to close nonessential businesses, the company has extended its previously announced temporary closure of all of its retail stores, distribution centres and New York office until further notice. The Savannah corporate office will also be temporarily closed for all but minimum basic operations. The company will continue to monitor the guidance provided by government and health authorities to determine the appropriate time to reopen its stores, distribution centres and offices.

“Our guiding principle is that we will continue to prioritise the health and safety of our associates, customers and the communities we serve,” said David Makuen, Citi Trends’ chief executive officer.

The company will pay for the first 30 days of medical benefits for covered associates during the furlough, and assist all associates with information about available resources. Additionally, the company has temporarily reduced the cash compensation of its CEO and board members by 25 per cent and temporarily reduced the cash compensation of its senior executives by 15 per cent to 20 per cent. These steps, together with the company’s previously announced reductions in operating expenses, capital expenditures and inventories, as well as the company’s utilisation of its credit facility, are a continuation of the aggressive and prudent actions the company is taking to preserve cash and remain resilient during this unprecedented period.

“This furlough was a very difficult decision knowing that good people would be affected; however, we felt it was a necessary step to ensure the long-term viability of our company and the livelihood it provides to our associates. We will continue to pursue all responsible actions to strengthen our financial position and preserve liquidity, and we will make every effort to bring our associates back to work as soon as possible. We look forward to reopening our stores in the future so we can all go back to doing what we do best, which is serving our customers,” added Makuen.

Citi Trends, Inc is a value-priced retailer of fashion apparel, accessories and home goods for the entire family. The company operates 574 stores located in 33 states.

Fibre2Fashion News Desk (PC)