Belk furloughs workers, cuts senior staff pay 50% during wave of coronavirus closings

Belk department stores are furloughing employees following store closings last week amid the novel coronavirus pandemic.

Company spokeswoman Jenny Anderson confirmed to the Observer Friday afternoon that Belk is furloughing workers.

Belk has about 22,000 employees, including around 20,000 working in stores, Anderson said. It was not immediately clear how many workers were being furloughed.

In a statement, Belk said,: “Due to the significant shift in our business stemming from the COVID-19 pandemic, we have made many difficult operational decisions over the past month... We’ve recently made the toughest decision to date – to temporarily place certain store and home office associates on furlough. “

Most people who remain working will experience a reduction in pay, with the most senior leaders taking reductions up to 50%, Belk said.

The company also created the “One Belk Relief Fund” to provide a one-time grant to Belk employees who may qualify for financial assistance.

The Belk announcement comes at a time when more than 3 million people lost their jobs between March 14-21, the (Raleigh) News & Observer reported Thursday. Even during the Great Recession in 2009, job losses never once approached 1 million in a week.

Ten days ago, Belk temporarily closed all stores through the end of the month based on the Centers for Disease Control and Prevention’s guidance to restrict large gatherings during the pandemic.

Belk CEO Lisa Harper said then the company would provide benefits and compensation to impacted workers during the two-week temporary closure.

Customers can continue to shop online and through the store’s app, the company said.

Other large retailers, like Apple, Anthropologie, REI, Madewell, JCrew and Nike, had also announced store closings.

Other Belk moves

Last month, Belk announced the elimination of 80 corporate jobs because of restructuring.

Belk had more than 1,300 employees at the corporate office, Anderson said.

The department store, founded in Monroe in 1888, has 294 stores in 16 Southern states. In 2015, Belk was sold to the private equity firm Sycamore Partners for $3 billion.

Following Mecklenburg County’s stay-at-home order that went into effect Thursday, all Charlotte malls closed with only essential businesses like pharmacies and some restaurants serving takeout remaining open.

This story was originally published March 27, 2020 at 12:49 PM.