An update from our CEO


May 11, 2020

Hello Team,

In the last two weeks our field team members in select markets, as well as some furloughed corporate team members who support stores, returned to work. We are excited to bring the teams together again and all of us are inspired by their enthusiasm to help us push forward on our path to reopen our stores.

As we look ahead, I want to give you an update on our broader reopening strategy.

We are currently operating almost 900 stores across our brands through ship-from-store and curbside pickup. By next week, we will open our first stores in Texas and South Carolina to the public and we’re piloting a small return to work strategy for our Ohio corporate office for required tasks. As more states announce reopening plans, we’re paying close attention to the policies and directions from each jurisdiction while keeping your health and safety at the center of everything we do.

Just like you, we are eager to reopen our stores and offices, but we’re being cautious. Your health and well-being are our priority and we’re taking time to build practices to help provide a safe environment for you and our customers to work and shop.  While we continue to refine our reopening strategy, your temporary furlough will remain in place. To support you during this time, if you are not receiving a paycheck, our coverage of the associate portion of your medical benefits has been extended through the month of June.

The impact of COVID-19 is like nothing any of us have seen before. What keeps me going in this time is the passion our teams have for our brands, our customers, and each other. I am incredibly grateful for your patience and continued commitment.

I will provide another update on May 20, 2020. Until then, please continue to take care of yourself and your family.

Stay well,


Gary Muto, Chief Executive Officer


April 22, 2020

Hello Team,

It is hard to believe that it has been two weeks since our last communication, so much has happened since the last time we connected. I am pleased to share that we have shifted our focus to a reopening strategy, and I want to use this update to tell you about our progress.

Although our stores have been closed for five weeks, I have been encouraged by our customers’ continued engagement with our brands on our digital platforms. We have been exploring opportunities to evolve how we connect with her, and last week, we took a small step forward by testing a modified store-operating model in select locations. With the learnings from that test, we now have over 100 stores across our brands serving our clients through Ship from Store, and we will begin testing Curbside Pick-up in select locations next week. I am cautiously optimistic about the early results of the test. We have been able to address the inventory in our stores and importantly, we have been able to bring a small group of our teams back together safely and responsibly.

As states and localities begin to issue reopening orders, our unwavering priority is the safety of our associates and customers. We have so much more to learn about how we will navigate the “new normal.” I have asked the team to use this time to gather more insights from health officials before we open to the public. We will evaluate our options store-by-store and market-by-market. While our approach will not be one-size-fits-all, and everyone will not come back at once, we will be consistent in our commitment to keeping safety at the center of everything we do.

Additionally, I want you to know that a small taskforce is underway to determine our corporate office re-opening strategy. As we continue to study and learn more about safety and our meeting requirements, we will share additional information on our plan in our next update.

While our temporary furlough remains in place, we have improved our options to help us stay connected with you. Please update your personal contact information, including phone and email, in myAssociateHub and we encourage you to opt-in to our voluntary Text Alert program that will notify you when general updates are posted to myAssociateHub.

Amidst all of this uncertainty, one thing is for sure – we miss you, we miss our teams, and we miss our customers! We are all still one team, with one mission and I am committed to staying connected with you.

I will be in touch soon with more updates. Until then, take care of yourself, your family, and each other.

Be Well,


Gary Muto, Chief Executive Officer


March 24, 2020

Team,

Together with our associates, families, and communities, we are experiencing an unprecedented time in our country. The outbreak of COVID-19 is having a severe impact on businesses across industries, and we are not an exception.

Several weeks ago, we made the decision to temporarily close our 2800 stores across our five brands and channels. In light of the current environment, we have extended the temporary store closures and will continue to reassess as information becomes available.

While the stores have been closed, we have been able to maintain our e-commerce operations. I want to thank all of our Distribution and Fulfillment Center teams for their tireless effort to continue to work and deliver for our customers every day.

Our customer is continuing to shop our brands, but with our stores closed, our total revenue and business are challenged. As a result, all of us must take swift actions to be in a position to reopen our stores for our associates, customers, and shareholders and sustain our business during this uncertain time.

To control our operating expenses, I have asked our entire team to focus immediately on reducing costs, inventory commitments, and capital expenditures. I have also asked the team to suspend our company match to our 401(k) and Health Savings Account plans. The details of these plan updates will be made available to you via myAssociate HUB to help you manage through these changes. Please know these steps will allow us to preserve cash so that we are in the best position to resume operations after this crisis.

Due to the uncertainty related to the duration of COVID-19, I have also had to make extremely difficult decisions as it relates to our teams. Working with leaders across the organization, we temporarily furloughed all of our store associates on Wednesday, March 25, 2020 and a percentage of our corporate population earlier today. Carrie and I have taken a 50% reduction in pay and to continue to put our company in the best position after these challenging times, all remaining corporate associates above a certain salary will take a temporary reduction in their base pay.

These decisions are some of the most challenging I have ever had to make. I understand the impact it will have on you during this time of great uncertainty and am committed to communicating with you regularly in real-time. As we continue to make decisions in two-week increments, I will also provide a bi-weekly update on our temporary furloughs every other Wednesday on myAssociate Hub.

Over the last few years, we have been fighting to turn our business around. Despite many challenges, all of you have shown an unwavering commitment to each other, our customers and brands. It is incredibly disheartening for us to have to take these steps due to the unpredictable and unimaginable impact of COVID-19. I want to thank you for your dedication, understanding, and support as we manage through this crisis.

I want you to know that we are not alone in this situation. We have been working with other retailers to navigate through this incredibly complex and uncertain time. I am hopeful that we will return to normal business operations soon. I am committed to doing everything possible to be ready and able to reconnect with you and our valued customers when this crisis is controlled.

I hope you all stay safe and healthy and wish you and your families well.

All my best,

Gary Muto, Chief Executive Officer

FAQs

Customers

 

Are your stores open? When do you expect to open your stores?

  • We have been continuously monitoring the impact of COVID-19 and are putting our associates, customers and community at the center of everything we do. In light of the current environment, we have extended the temporary store closures and will continue to reassess as information becomes available.

Are your brands still open online?

Are your brands offering free shipping or free returns? How can I make a return? Are you extending your return policies?

 

Associates

 

How are you keeping your distribution centers safe?

  • As the situation around COVID-19 continues to evolve, the health and safety of our associates remain a priority for us and we are taking the following steps:
    • We are providing face masks and gloves for our associates who requests them at our distribution and fulfillment centers.
    • We are continuing to follow and communicate to our associates the CDC’s recommended guidance on behaviors like washing hands, social distancing, the cleaning of surfaces and to stay home and seek medical advice if they are exhibiting symptoms of the virus. We are also ensuring that our associates at our distribution and fulfillment centers have an adequate supply of soap, hand sanitizers and disinfectants.

How are you taking care of your teams? 

  • Since 2007, ascena has maintained the Dimes from the Heart charitable organization which provides emergency assistance funds to associates. The funds are for associates, and funded by associates.  Our associates, including associates in our stores and distribution centers and corporate employees below the Vice President level, experiencing financial hardship can now apply for a one-time COVID-19 exception assistance grant. Funds are generally distributed to associates affected by a home catastrophe, natural disaster, funeral expenses, emergency travel, care of a family member, domestic violence or are a victim of a crime. As a result of the unprecedented impact of COVID-19, a one-time exception is being made to the qualifying events noted above for a Dimes from the Heart grant, to include associates with COVID-19. Associates can find more information via myAssociateHUB.

 

Community

 

What are you doing to give back?

  • As COVID-19 continues to impact our communities, the ascena Foundation is working with our vendors who produce personal protective equipment to mobilize the donation of over 50,000 face masks to the New York Governor’s office, New York City hospitals and the American Red Cross.  We want to do our part to support the brave disaster responders and blood drive teams with the critical resources they need to save lives in the midst of this crisis.
  • ascena is also donating masks to its charitable partners supporting pediatric health – St. Jude Children’s Research Hospital and Nationwide Children’s Hospital, both of which serve at-risk patients.
  • During this time of crisis, ascena and its brands will also continue to support its long-standing partners, such as the Breast Cancer Research Foundation (BCRF), St. Jude Children’s Research Hospital, Delivering Good, BSR and Give Back Box.
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