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April 13, 2020

Burlington furloughs majority of staff amid store closures

Photo | Flickr/Mike Mozart Burlington has closed all of its stores during the coronavirus crisis.
By Joe Cooper

Burlington, which has seven department stores in Connecticut, has furloughed most of its employees as the national retailer remains closed during the COVID-19 outbreak.

New Jersey-based Burlington Stores Inc. on Monday said it temporarily furloughed the majority of store and distribution center employees after closing its 600-plus locations nationwide on March 22. 

Burlington, formerly known as the Burlington Coat Factory, has locations in Farmington, Meriden, Bloomfield, East Hartford, Hamden, Waterbury and Orange. It is not yet clear how many Connecticut employees were impacted by the furloughs. Company officials could not be reached for immediate comment Monday.

Burlington CEO Michael O’Sullivan in a statement said the retailer will reopen when “it is safe to do so,” but did not specify when that might be.

O’Sullivan, who is not currently earning a salary, said the company provided two weeks of financial support to employees impacted by the store closures and distribution shutdowns. 

Furloughed employees will also continue to receive their current healthcare benefits, and the company is providing a hotline to support workers better access to the federal government’s $2 trillion stimulus package.

“The decision to furlough associates was extremely difficult, but it was necessary in order to protect the business during this unprecedented period of disruption,” he said.

Meantime, Burlington’s board of directors will forfeit their cash compensation and its executive leadership has voluntarily agreed to cut their salary by 50%, officials said.

The company has also suspended its share buyback program, reduced inventory purchases and cut capital expenditures, among other cost-cutting measures due to the disruption caused by the COVID-19 pandemic.

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