GNC, Vera Bradley furlough workers; Vera Bradley cuts 401(k) matches

GNC Holdings Inc. and Vera Bradley Inc. were the latest retailers to announce furloughs and other measures to shore up their balance sheets amid store shutdowns caused by novel-coronavirus pandemic. GNC Holdings said late Friday it was temporarily furloughing a "significant portion" of its store and corporate employees. Those workers will maintain health benefits through at least this month, the retailer said. GNC put in place a hiring freeze and cut merit raises, among other cost-cutting moves across its businesses except digital, it said. Also late Friday, Vera Bradley said it would furlough most of its store employees and "certain" corporate employees effective Monday "until it is considered safe and advisable to reopen our stores." Some of the company's distribution-center employees were furloughed last week. "Our furloughed associates remain valued members of our Vera Bradley family, and we look forward to calling them back to work as soon as possible," the luggage and handbags retailer said. The employees on furlough will have benefits for up to 12 weeks, the company said. Vera Bradley is also reducing salaries, including a 75% pay cut for Chief Executive Rob Wallstrom, and temporarily cutting 401(k) company matches as well as charity donation matches, among other moves. Shares of Vera Bradley were flat in the after-hours session after ending the trading day down 2.1%

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