Uni-Select says it will continue to optimise its operations in the face of unprecedented challenges for the entire automotive aftermarket.
In a corporate update on measures taken related to the ongoing Covid-19 pandemic, the company said it expects demand for auto parts to continue to be under pressure in the near term.
Focusing on a cash conservation, the company has reduced work hours, reduced number of open store locations, implemented 20% salary cuts for executive management and 25% for members of the board of directors, and made the difficult decision to furlough approximately 50% of its employees across all three of its business units.
More recently, the board has decided to suspend all future dividend payments for the time being with the exception of the dividend declared on February 19, 2020 that will be paid on April 21, 2020 to shareholders of record as of March 31, 2020.
“These important and difficult decisions were made by our team in a quick and nimble fashion, all within a very volatile environment, but always with the best interest of the Corporation as a whole in mind, recognizing the sacrifices and hardships being imposed on so many,” said Brent Windom, president and chief executive officer of Uni-Select.
“These decisions are being made to ensure that the Corporation comes out of the COVID-19 crisis strong and ready to continue its plans for growth, overall performance improvement and value creation for its shareholders.”
He expressed gratitude to all those working on the front lines of defense for the security and well-being of society.
Uni-Select will hold its annual and special meeting of shareholders scheduled for May 14, 2020 in a virtual-only format which will be conducted via live webcast.