By Brian Thomas –
Tillys has temporarily closed its 239 retail stores in the U.S., including its Irvine Spectrum Center location. Non-management store employees have been furloughed. On March 18, the company shut down its distribution center on Whatney in Irvine and furloughed most of its staff. The company says its e-commerce center will continue to operate.
“We are certainly experiencing unprecedented times, and it breaks our hearts as a management team to have to furlough members of our outstanding family of highly engaged store associates, distribution staff, and corporate team members,” said Ed Thomas, president and chief executive officer. “We look forward to the day when we can welcome our team back home with confidence that better days will be ahead.”
The company also announced its executive management team and its board of directors will forego compensation as follows:
- Hezy Shaked, executive chairman and chief strategy officer, has elected to forgo his salary;
- Ed Thomas, president and chief executive officer, has elected to forgo his salary for the month of April 2020, and thereafter will join the company’s management team in taking a temporary pay cut;
- Each of the other members of the company’s corporate management team will take a significant temporary pay cut, effective immediately, based on a graduated scale according to annual salary; and
- The members of the Board of Directors have unanimously elected to forgo their respective cash retainer fees for service on the Board.
Recently the company borrowed $23.7 million under its credit facility, the maximum amount available, at an interest rate of approximately 1.7%. According to the company’s website, it now has $120 million in cash and investments on hand. Despite the uncertainty of the timing of the re-opening of stores, the company says it believes its cash reserves will carry the company through the remainder of 2020.