Chattanooga-based shopping center owner CBL Properties has put into place a temporary partial or full furlough impacting about 300 workers, or nearly 60% of its workforce, amid the coronavirus crisis, the company said Tuesday.
Also, the operator of Hamilton Place and Northgate malls has instituted salary reductions for executives.
CBL executives including Chairman Charles Lebovitz, CEO Stephen Lebovitz and President Michael Lebovitz as well as the independent directors of CBL's board have agreed to reduce their base salaries and independent director fees by 50%.
In addition, a 20% base salary reduction will apply to other officers and a 10% reduction will apply to all other employees, according to the company. The company will continue to provide full health care benefits for all furloughed employees.
The moves come after a response to local and state mandated closures leaving a majority of CBL's portfolio closed, the company said. While the full impact of the temporary closures cannot be quantified, based on discussions with tenants, CBL said it anticipates a significant deterioration in near-term revenue.
"First, I would like to reiterate how proud I am of the CBL organization," said CEO Stephen Lebovitz. "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."
But, he said, the challenges continue and it must take "difficult, but necessary steps to ensure CBL is positioned to sustain the impact of the pandemic and generate success in the future."
This is a developing story. Stay with the Times Free Press for updates.