ATLANTA — HD Supply Holdings, Inc. announced that materially changing market conditions caused by the COVID-19 pandemic have impacted the company’s previously announced timeline to separate its Facilities Maintenance and Construction & Industrial businesses.
HD Supply remains committed to the separation of its two businesses and reaffirms that the strategic rationale for the separation is unchanged. The company continues its preparation to ensure that the two companies are ready for the separation when the markets sufficiently recover.
“As our industry reacts to COVID-19 and the large-scale effort to contain it, we remain focused on navigating the crisis, keeping our associates healthy, serving our customers, and protecting the financial stability of our company during these unprecedented times,” said Joe DeAngelo, Chairman, President and Chief Executive Officer of HD Supply Holdings, Inc.
Chairman, President and Chief Executive Officer Salary:
In response to market uncertainty related to the COVID-19 pandemic, beginning with the next payroll on April 6, 2020, DeAngelo has voluntarily waived his base salary for the remainder of the year, except for amounts necessary to cover (a) pretax payroll deductions for medical coverage that are irrevocable under the tax rules applicable to cafeteria plans, and (b) payroll deductions for charitable contributions to HD Supply Charitable Fund Inc., a 501(c)(3) disaster relief fund for employees of HD Supply and their families. All other elements of DeAngelo’s compensation remain unchanged.
Liquidity Update:
As of March 29, 2020, HD Supply had combined liquidity of approximately $728 million including $104 million in cash and cash equivalents and $624 million of additional available borrowings (excluding $4 million of borrowings on available cash balances) under HD Supply, Inc.’s senior asset-based lending facility, based on qualifying inventory and receivables. This is an increase of $100 million from HD Supply’s previously announced combined liquidity of $628 million, as of February 2, 2020.
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