Dick’s Sporting Goods said in a filing that it is planning to furlough a large number of its 40,000 employees across the United States as the business struggles to operate amid the CCP virus pandemic.
“It is our goal that when this crisis subsides, we will welcome back our teammates, open our doors and get back to the business we love of serving athletes and our communities,” the company said in a regulatory filing and note to investors on Tuesday.
The filing said that it now has to “furlough a significant number of our [employees] starting on April 12,” adding that they “are the lifeblood of our company,” which operates about 800 stores across the United States.
Due to the Chinese Communist Party (CCP) virus, it has become “increasingly evident” that its stores won’t open anytime soon.
The closure of gyms, social distancing rules, and most states telling people to stay at home has crushed demand for athletic goods sold by Dicks. More than 40 governors have issued stay-at-home orders over the past several weeks after federal officials’ recommendations.
Dick’s stock is up 5 percent as Wednesday morning. However, it has lost about half its value so far in 2020.
A number of nationwide retailers that don’t sell groceries or other essential supplies have placed their employees on furlough as stores have been forced to temporarily close amid the pandemic.
According to the Wall Street Journal, Dick’s employs about 40,000 people. The company drew headlines in 2018 when it announced that it would stop the sale of all assault-style guns at its stores and would stop selling guns and ammunition to anyone under the age of 21.