Department stores and mall-based chains
have cut executive pay and suspended cash
dividends and stock buybacks or repurchases to
preserve cash. They’re also drawing down their
credit lines to make sure they have a bigger pile
of cash on hand.
Nordstrom warned last week that it doesn’t
know when it will be able to reopen its physical
stores and that prolonged closures could cause
it to become financially distressed. Ralph Lauren
and Gap Inc. have announced that, for now,
they’ve stopped ordering products for the fall.
Other retailers will likely follow.
Image: Nam Y. Huh