Wage subsidies and new debt facilities help keep all 11,000 Warehouse employees on full pay. Photo / Supplied
Wage subsidies and new debt facilities help keep all 11,000 Warehouse employees on full pay. Photo / Supplied
Wage subsidies and new debt facilities are making it possible for The Warehouse Group to keep all its 11,000 employees on full pay throughout the Covid-19 lockdown.
The group said it had received almost $70 million in wage subsidies, deferred spending and added $150m of debt facilities in order tocope with the new operating conditions.
When the isolation period was announced, the group assured workers they would receive their regular income in full during the four weeks.
The company had initially expected to keep 90 "red sheds" open as essential services but was rebuffed by government officials who ordered it to close all stores.
Following the closure, the group said it applied for the government's wage subsidy scheme and has received a total of $67.7m to support its employees over a 12-week period.
The split by brands is $52m to The Warehouse and Warehouse Stationery, $12.1m to Noel Leeming, $3.2m to Torpedo7 and $400,000 to the TheMarket.com.
"The receipt of this funding is crucial to the group maintaining its workforce while stores remain shut and the group thanks the government for this support," the company said in a statement.
Further efforts to manage the business through the crisis include deferring discretionary capital expenditure and cutting operating costs to better align with the new economic reality.
The Warehouse said it has secured $150m of additional banking facilities, extending its total available debt facilities to $330m.
The additional facilities are undrawn and would allow for the refinancing of a $125m NZX-listed bond, due to mature in June.
Many of the group's brands have now been approved to sell essential items online and the group has re-opened its distribution centres to support online orders.
Team members completing essential item orders are doing so using strict PPE, hygiene and safe distancing protocols in line with Ministry of Health guidelines, the group said.
