Due to the unprecedented economic hardships stemming from the coronavirus pandemic, popular furniture chain Leon’s Furniture (TSX: LNF) announced it will be closing a large number of its Canadian stores, as well as laying off several thousand of its employees.
Leon’s which also owns well-known chains such as the Brick, Midnorthern Appliance, and Appliance Canada, has announced it will be temporarily shutting the doors at 72 of its 205 Canadian stores, as well as terminating approximately 3,900 employees. The news came via a letter that was sent to the Brick employees, which also states that the furloughed employees will be receiving a top-up of funds in addition to their employment insurance benefits. However, the additional benefits will only have a duration of two weeks from when the employee is laid off.
In the meantime, the stores that will remain open are supposedly going to prioritize cleaning and sanitization efforts regarding high-traffic areas, as per public health guidelines. However, the stores will be operating on reduced hours during the pandemic.
Information for this briefing was found via CBC News. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.