La-Z-Boy Inc said on Sunday it was putting 6,800 employees on furlough, cutting workers’ pay, scrapping its June dividend and ending its share repurchase plan indefinitely to conserve cash as it deals with the fallout from the coronavirus.
This impacts La-Z-Boy Midwest in Neosho, Missouri which employs hundreds of workers.
The furniture maker, which said the furlough affected 70% of its workers, added that it was cutting senior management pay by 50% and dropping salaried workers’ pay by 25% until further notice.
Monroe, Michigan-based La-Z-Boy said it was temporarily closing its U.S. manufacturing facilities effective immediately and would re-evaluate the decision on April 13.
The company, which says it has $200 million of cash and equivalents on hand, said the temporary closing of all company-owned La-Z-Boy Furniture Galleries stores was also under way, with 130 of 155 stores currently closed.
Once in-process orders are delivered, it will also temporarily close its regional distribution centers.
The board of directors would also forgo the cash portion of its pay until further notice and the company said it was freezing its 401(k) retirement account matches.
La-Z-Boy has a market value of more than $997 million and a dividend yield of 2.58%, according to data from Refinitiv. Its stock, which closed at $21.67 on Friday, has fallen 31.2% year-to-date.