Havertys Provides COVID-19 Update and Extends Store Closures

ATLANTA, April 01, 2020 (GLOBE NEWSWIRE) -- HAVERTYS (NYSE: HVT and HVT.A) announced today it would extend the suspension of its operations through April 30, 2020 in response to the COVID-19 outbreak. Havertys closed its stores March 19 and halted deliveries March 21 with an anticipated reopening of stores on April 2, 2020. Affected team members were paid during these periods of operational pause and most Havertys’ corporate office personnel transitioned to working remotely.

The national health emergency has not abated and in response to the extended closure of its stores through April 30, 2020, Havertys is taking the following actions:

• Furlough of virtually all store and distribution personnel, and majority of warehouse staff
• Furlough of corporate office personnel to a minimum level for necessary operations
• Salary reduction of 40% for the chief executive officer, and tiered salary reductions for an indefinite period for officers and managers not furloughed
• A suspension of directors’ cash retainer fees
• A freeze of Havertys’ 401(k) match
• Deferral and cancellation of most orders for inventory
• Reduction of controllable costs and elimination of non-essential capital expenditures
• Suspension of share repurchases and evaluation of dividend program.

Teammates will continue to receive enrolled health benefits while on furlough, with Havertys covering 100% of the premiums through this announced period of closure.

Customers can use the company’s website to access decorating tools and ideas, information on furniture cleaning, and make online purchases for delivery after April 30, 2020.

Clarence H. Smith, president and chief executive officer said, “The decision to furlough our valuable and loyal teammates was extremely difficult to make and not made lightly. The economic effect of this health emergency has had a sudden and severe impact on our business. The actions we are taking must be done to help reduce risk and allow Havertys to reopen its stores, when appropriate, and return to providing work for our teammates and vendors.

Havertys was founded in 1885 and has survived the impact of wars, the Great Depression, numerous recessions, and various natural disasters. We entered this period in history with a strong balance sheet and a determination that, as in the past, we will prevail and continue our mission of helping customers bring the vision of their home to life.”