Top CBL officials are taking hefty salary cuts and employees are also having pay reductions and furloughs as the Chattanooga-based mall company tries to weather the lingering pandemic.
Officials said, "In response to local and state mandated closures, the majority of the CBL portfolio is currently closed. While the full impact of these temporary closures cannot be quantified, based on discussions with tenants, CBL anticipates a significant deterioration in near-term revenue. In response, over the last several weeks, CBL has implemented comprehensive programs to halt all non-essential expenditures, to reduce operating and overhead expenses and to reduce, defer or suspend capital expenditures, including redevelopment investments."
“First, I would like to reiterate how proud I am of the CBL organization,” said Stephen Lebovitz, chief executive officer. “The pandemic has brought about extraordinary trials that no one could have predicted, but every CBL team member has risen to the occasion, demonstrating their dedication and belief in CBL.”
Mr. Lebovitz added, “Unfortunately, the challenges continue, and we must take difficult, but necessary steps to ensure CBL is positioned to sustain the impact of the pandemic and generate success in the future.”
CBL, whose holdings include Hamilton Place Mall and Northgate Mall in Chattanooga, has completed a comprehensive review of current planned capital expenditures for 2020. The Company has quantified reductions and deferrals to maintenance capital expenditures and redevelopments estimated in the range of $60 million - $80 million.
CBL has implemented programs to further reduce overhead expense, including a temporary salary reduction program as well as a partial and full furlough program. Every member of the CBL team will participate at some level.
CBL executives Charles Lebovitz (Chairman), Stephen Lebovitz (CEO) and Michael Lebovitz (President) as well as the Independent Directors of CBL’s Board have agreed to reduce their base salaries and Independent Director fees by 50 percent. A 20 percent base salary reduction will apply to other officers and a 10 percent reduction will apply to all other employees.
CBL has implemented a broad-based temporary furlough program across its properties and headquarters impacting approximately 300 employees or almost 60 percent of its workforce. The program includes partial (reduction of hours) and full furloughs. The company will continue to provide full health care benefits for all furloughed employees.
Officials said, "The role that CBL’s properties play in its communities as a provider of employment, goods, services and commerce is an important one. CBL’s properties provide a source of livelihood for countless large and small businesses across the country. CBL believes that it is important to support our tenants and work together to build success. In keeping with this, the Company has launched a website (https://www.cblproperties.com/covid-19-response) to help our tenants identify federal, state and local resources that may be available to support small businesses and their employees during the pandemic. CBL and its properties have always been a proud community partner, but even more so as communities come together to provide support for those most impacted by the COVID-19 pandemic. At CBL locations across the country, we are partnering with organizations that are providing support to individuals and groups in need. In addition to hosting blood drives and charitable collection drives, we are using our marketing platforms to shine a light on local organizations that are providing relief and support for individuals impacted by this unprecedented crisis."