Reference is made to XXL ASA’s (“XXL” or the “Company”) update on the COVID-19 situation on 18 March 2020. As a consequence of the significant decline in sales, the Company has in accordance with its contingency plan resolved to give notice of temporary layoffs to around 1,000 store employees in Norway, and to start co-operation negotiations in Finland concerning the need for temporarily layoffs. XXL closed its five stores in Austria on Monday 16 March and consequently initiated temporarily layoffs of around 200 employees in Austria.
XXL regrets that the COVID-19 situation is leading to temporary layoffs of highly motivated and valued employees. “The COVID-19 situation is an extraordinary situation with state of emergency around the globe and a lot of uncertainties related to it. Although we have a great faith in XXL and the sports industry in general, we do have to take the necessary actions in this situation with low visibility and high volatility, and we are very impressed with how our employees have handled the situation so far in contributing to limit the contagion of COVID-19” says interim CEO in XXL ASA Tolle Grøterud.
“Resolving temporary layoffs is a hard decision to make, and we are grateful for the good dialogue with and understanding from our employee representatives. Hopefully the COVID-19 situation will only last for short period of time” says interim CEO in XXL ASA Tolle Grøterud.
The Company will continue to consider and implement additional cost reduction measures across the group.
For further queries, please contact:
Investor Relations
Tolle O. R. Grøterud
Interim CEO, XXL ASA
Tel: +47 90 27 29 59
E-mail: ir@xxlasa.com
Press contact Norway:
Marte Ramuz Eriksen
Email: presse@xxl.no
Phone: + 47 952 21 425
Press contact Sweden and International
Anders Andrén
Email: press@xxl.se
Phone: +46 76-133 99 40
About XXL ASA
XXL is a leading sports retailer with stores and e-commerce in Norway, Sweden, Finland, Denmark and Austria. It is the largest among the major sports retailers in the Nordics. XXL pursues a broad customer appeal, offering a one stop shop experience with a wide range of products for sports, hunting, skiing, biking and other outdoor activities. XXL's concept is to have the largest stores with the best prices and the widest assortment of products, focusing on branded goods.