Coronavirus

Coronavirus Update: Inditex Factories Make Medical Supplies; FedEx Reduces Chief Executive's Pay

Inditex

Inditex, the owner of brands such as Massimo Dutti and Zara, is having its clothing manufacturing facilities in Spain produce medical supplies, while its logistics hub has almost arrived at a stop, Reuters reported. The firm said it had shuttered 3,785 retail shops around the globe for a time.

Merchants worldwide have needed to shutter stores and their entire business in some instances while governments had instructed individuals to stay in their residences to contain COVID-19. Spain has reportedly experienced the most lethal outbreak of the coronavirus beyond Italy.

As a result, the government restricted the lockdown’s provisions by making all laborers who are not essential remain in their residences for two weeks over a period spanning March 30 to April 9.

The 13 factories in Inditex’s home market have moved to making medical supplies like masks and scrubs to stay open and help with the efforts to combat the coronavirus per unnamed sources in the report.

On another note, FedEx Corp plans to use $1.5 billion from a credit line and cut a portion of the compensation of its chief executive as package delivery services are impacted by lockdowns throughout the world, Reuters reported. FedEx has, as it stands, approximately $1.86 billion available with current credit agreements for loans in the future.

In addition, FedEx is intending to harness the debt markets to strengthen reserves as the coronavirus situation makes its own challenges worse such as increased costs related to rolling out Sunday home delivery and TNT Express integration issues.

The company said its board had given the go-ahead for a 91 percent cut in the base salary of Frederick Smith, its chief executive, for half of a year from April 1 to Sept. 30.

FedEx and the United Parcel Service, its bigger competitor, have requested that the U.S. Treasury work fast to release billions in loans and grants to support the industry in a climate of declining demand.

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