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Friday, Jun 24, 2022

Coronavirus Uncertainties Prompt Tilly’s Furloughs

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Irvine retailer Tilly’s Inc. (NYSE: TLYS) said Friday it furloughed store associates and some workers at corporate as the length of the coronavirus’ impact becomes more uncertain.

Most of the workers at a distribution center servicing the company’s 239 stores have also been affected by this latest move. The company’s e-commerce facility remains operational to service web orders.

President and CEO Ed Thomas will not take a paycheck in April, followed by a temporary pay cut, alongside the rest of the management team at headquarters. Co-founder, Executive Chair and Chief Strategy Officer Hezy Shaked will no longer take a salary, while members of the board are not taking their retainer fees.

“We are certainly experiencing unprecedented times, and it breaks our hearts as a management team to have to furlough,” employees Thomas said in a statement. “We look forward to the day when we can welcome our team back home.”

The company reported $122.4 million of cash and investments, including $23.7 million drawn down from its credit facility. Tilly’s said it expects its cash on hand to carry the company through the remainder of its fiscal year. That’s based on continued e-commerce sales and rents of the company’s stores being deferred, among other factors.

Tilly’s, which had a recent market cap of $128.5 million, closed Friday down 4.8% to $4.33.

Go here for more updates on how OC companies are responding to coronavirus.

For ongoing, in-depth coverage of coronavirus effects on OC businesses, see the Monday print edition of the Business Journal.

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