Duluth Holdings Provides Business Update and Announces Partnership with American Red Cross - Seite 2

American Red Cross
Duluth Trading is proud to announce a new partnership with American Red Cross for the month of May. To help the American Red Cross continue to deliver its lifesaving mission nationwide due to the COVID-19 public health emergency, the Company has selected key products to donate 5% of the purchase price to the humanitarian organization through May 31, 2020. Donations designated to the Coronavirus Outbreak will be used to help the American Red Cross maintain a sufficient supply of blood as well as supplies to equip volunteers and staff with protective equipment, food, shelter and relief supplies as they respond to people in need.

New Women’s Campaign
New products are key to the long-term growth of Duluth Trading. To that end, the Company recently launched its new women’s campaign celebrating the achievements of real-life women who “forge their way.” The inaugural campaign is led by a new brand anthem video ringing in the powerful stories of inspirational women – tattoo artists, pilots, dirt bikers, potters, ranchers, and more. Filmed by a majority of female creative and production crew, the campaign reinforces Duluth Trading’s overall philosophy of creating apparel that stands up to any challenge and prioritizes freedom of movement, durability and performance of two of our bestselling products, Fire Hose Pants and No Yank Tanks.

Liquidity Update
The Company negotiated an incremental delayed draw term loan of $20.5 million that will be available to be drawn before April 29, 2021 and also amended its loan covenants to allow for greater flexibility during its peak borrowing periods this year. Measures to manage cash flows and other expenses that were previously disclosed in our April 10^th press release have been implemented and are expected to lead to cost savings and a sizable reduction in our cash burn due to the temporary store closures. The Company’s liquidity position as of May 4, 2020 has improved since April 10 with $85 million outstanding on its line of credit, $7 million of cash on its balance sheet and an additional $20.5 million of borrowings now available on its $150 million credit facility. The Company’s capital expenditure plans for 2020 have been cut in half and are expected to be close to $15 million.