L Brands has amended its revolving credit facility to ensure liquidity in light of the ongoing coronavirus pandemic. The parent company of Victoria’s Secret reduced its 2020 capital expenditures from its original forecast of approximately $550 million to approximately $250 million.
It also reduced its spring inventory receipts by approximately 45 per cent at Victoria’s Secret and 20 percent at Bath & Body Works versus last year. The Columbus, Ohio-based apparel group is not paying rent as the Covid-19 pandemic continues to force store closures across North America and globally.
Since the beginning of the COVID-19 crisis, L Brands has announced a number of measures to strengthen its financial flexibility including suspending its quarterly cash dividend as of the second quarter of fiscal 2020, and making a substantial reduction in capital spending and other expenditures.
In particular, it is reducing the base compensation of senior vice presidents and above by 20 percent, while CEO Leslie H Wexner and other members of the board of directors will take no cash salary at all.
Most of its store associates including those currently not working to support the online businesses or who cannot work from home have been furloughed since April 5, 2020.
