American Halloween and party retail group Party City has announced a number of additional measures which have been put in place as part of its official response to the Covid-19 pandemic, including a 50% salary reduction for ceo Brad Weston.
The retailer recently extended its consumer-facing order collection service as it continues to focus on online sales over the coming months following the temporary closure of all retail locations across the United States. Customers can find store-specific details on www.partycity.com.
The following additional actions are now also being taken:
- A temporary base salary reduction of 50% for ceo Brad Weston, 30% for cfo Todd Vogensen and 15% to 20% for the rest of the executive leadership team.
- The Board of Directors has elected to forgo their respective quarterly cash retainers for the second quarter of 2020.
- The furlough of approximately 90% of store employees and 70% of wholesale, manufacturing and corporate employees. The Company will continue to provide health benefits to furloughed employees.
- Non-payroll expense reductions including advertising, occupancy and other store operating expenses, as well as professional and consulting fees.
- Cancellation of orders and negotiated receipt delays to manage inventory levels.
- Significant reduction in 2020 capital expenditure budget.
“As we continue to navigate these unprecedented times, we made the difficult decision to furlough a majority of our team members,” commented ceo Brad Weston. “We will continue to provide these team members health benefits and have also established the PCHI Employee Assistance fund for employees who are temporarily experiencing economic hardship due to the coronavirus pandemic. We believe our aggressive focus on expense, inventory and capital expenditure reduction will help preserve our financial health and flexibility as we work to ensure readiness to re-open our stores and welcome back our team members and customers as soon as the situation permits.”
He continued: “In the meantime, with our fully operational e-commerce site and expanding curbside pick-up, we are here to meet customers’ needs, with relevant offerings like our ‘Adventure in a Box’ and ‘Birthday in a Box’ assortment, as adults and children alike find new ways to adapt to the current environment and creatively and safely celebrate at home.”
