Winston-Salem-based HanesBrands increases cash-on-hand to weather Coronavirus storm
HanesBrands HQ in Winston-Salem, NC | Source: HBI
HanesBrands, a global marketer of everyday basic apparel, based in Winston-Salem, NC, says it will proactively draw down on its revolving credit facility as a precautionary measure to increase balance sheet flexibility during the COVID-19 global pandemic.
The company said it will draw down $630 million from its U.S. revolving loan facility to further strengthen its cash position, which will provide the company with additional financial flexibility to manage its business with a safety-first emphasis during the unknown duration and impact of the COVID-19 outbreak.
With the draw down, HanesBrands expects to have approximately $1 billion of cash-on-hand.
The measures and precautions being taken by governments, retail partners, and consumers in countries across the world to limit the spread of COVID-19 are having a significant impact on the economic activity in each region of the company’s global business.
HanesBrands issued first-quarter and full-year 2020 guidance on Feb. 7, 2020, which excluded any impact from the spread of COVID-19. Due to the uncertainty and rapidly changing environment relating to the disease, the company is withdrawing the guidance for the first quarter and full year and is not providing an updated outlook at this time.
Company officials said more information will be provided when first-quarter earnings are reported in May.