Lazydays Holdings has announced actions it is taking in response to the COVID-19 pandemic. These actions are in response to the unanticipated change in business conditions that have resulted from the rapid spread of coronavirus and the national emergency related to the virus.
Lazydays is taking immediate actions to adjust resources and costs to be in line with reduced demand caused by the coronavirus. These actions include:
- Reduce its workforce by about 25 percent
- Senior management will forgo 25 percent of their salary
- Suspend 2020 annual pay increases
- Suspend 401k match
- Delay non-critical capital projects
- Focus resources on core sales and service operations
“Despite the very strong sales activity experienced for most of the first quarter, we have begun to see a decline in store traffic and demand driven by recent events,” said William P. Murnane, chairman and CEO of Lazydays. “The overall magnitude and length of the impact from the coronavirus pandemic is uncertain at this time. We are hopeful the duration will be relatively short but believe it could possibly be months or quarters before business returns to normal. Our hardworking and dedicated employees are the soul of our business and it is very difficult to take these actions. However, we must respond quickly with every action possible to maintain our ability to serve our customers now and as the industry recovers.
“As this global situation continues to develop, our top priority is and will continue to be the health and safety of our customers and employees,” Murnane continued. “We are working smart and safe, and closely following all CDC guidelines related to the coronavirus. We have put a lot of energy and effort into carefully managing our finances and balance sheet over the past few years. … I want to thank the Lazydays employees for their hard work and commitment during this challenging time. They are an extraordinary team.”