Urban Outfitters borrows $220 million and takes protective measures

By Rebecca Melvin

New York, March 31 – Urban Outfitters, Inc. has borrowed $220 million to further protect its cash reserves in light of disruptions resulting from the Covid-19 pandemic, according to a company release.

The company has also taken other measures to protect its financial position and increase financial flexibility, such as reducing its capital budget by more than $100 million by delaying or canceling projects, adjusting inventory levels by canceling or delaying orders, and reducing all non-payroll expenses, including creative, marketing and travel.

“The global spread of Covid-19 is affecting every one of us and is certainly impacting URBN, as well. Our efforts, as a company, have been directed at mitigating the risk to our employees and customers while trying to maintain some business so we can continue to support and pay our workers,” Urban Outfitters chief executive officer Richard A. Hayne said in the release.

Philadelphia-based Urban Outfitters is a retailer of clothing, accessories and apartment items.

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