The Lovesac Co., a Stamford-based specialty furniture brand, announced that its executives will be receiving a temporary cut in their compensation in order to reduce operating expenses during the COVID-19 pandemic while approximately 445 part-time workers have been furloughed.
Cash compensation will be reduced by 20% for CEO Shawn Nelson, President and Chief Operating Officer Jack Krause and Executive Vice President and Chief Financial Officer Donna Dellomo. The base salaries of all other senior management and full-time headquarters team members will be temporarily reduced by graduated amounts, and the members of Lovesac”™s board of directors will take a temporary reduction of their retainer and monitoring fees and an extension of the associated payment timeline.
The company has also temporarily laid-off approximately 445 part-time employees, which represent 57% of its total workforce. Lovesac”™s 91 retail showrooms were closed on March 17. Customers can continue to shop online at lovesac.com.
As of April 1, the company had approximately $40 million in cash and $10 million in availability on its revolving line of credit and no outstanding debt on the revolver.
Nelson said that company is “aggressively managing all expenses, which includes difficult decisions on headcount reductions of part-time employees, working capital and capital expenditures to preserve our financial health and flexibility while also ensuring our readiness to resume full operations when conditions permit.”
