Dansko Contingency Updates

On behalf of Jim Fox: Given that we are at the end of April and nearly seven weeks into Pennsylvania’s stay at home order, I want to provide a brief business update. In previous updates, I have referenced the “unprecedented level of economic uncertainty”, how all of Dansko’s stakeholders are “under severe stress”, and how the pandemic has “wreaked havoc on everyone’s ability to do business.” Unfortunately, these conditions remain unchanged. The overall impact from the last seven weeks has been a historic level of order cancellations, holds, and delays, leaving open orders for the rest of 2020 well below (34%) last year’s level. While we will work hard to turn the tide, we expect Dansko to fall substantially short of 2019’s performance and our 2020 budget expectations. The level of uncertainty remains high, and retail may not be close to “normal” until Fall 2021. Whenever the new normal occurs, we expect it to look substantially different with a continued shift of business to ...

On behalf of Jim Fox:  Dansko, Earlier this week PA Governor Tom Wolf announced that the statewide stay-at-home orders would be extended until Friday, May 8. He went on to present a plan for reopening the state and categorized the reopening into three phases: red, yellow, and green. We do not yet know when Chester County will be moved from its current “red” phase into the “yellow” phase. However, the Governor did say that “the southeastern part of the state will be among the last places to reopen.” Additionally, it is not clear whether the “yellow” phase, whenever it comes, would change anything with regard to Dansko’s current status. Dansko will remain in our current status through at least Sunday, May 10th and we will continue to update and provide more information as it becomes available. • Dansko distribution center remains open on a limited basis           As always, your manager will be in touch with you regarding your schedule • Dansko...

Dansko, For the pay period that just ended on April 19, 2020 (for the upcoming pay date of Friday, April 24, 2020) – you may not change your election of PTO vs. unpaid time. That payroll is already in process and may not be changed. For the current pay period that ends on May 3, 2020 (for the next pay date of Friday, May 8, 2020) – any employee that wants to change his or her most recent election of PTO vs. unpaid time must do so by noon on Wednesday, April 22 . In order to allow for processing, no changes will be accepted after that time. If you wish to make a change, please email your manager, who will coordinate with the HR team. Thank you for your understanding and assistance in providing timely information so that we may accurately process payroll. Respect Marc

Frequently Asked Questions (with Answers) Reduced schedule/work week currently scheduled from March 13 through May 3, unless extended Question:    I am now on a reduced schedule, am I eligible to apply for unemployment?  Answer:  Your eligibility for unemployment compensation depends on whether you want to take days when you are not scheduled as unpaid or as PTO.  You can: 1.    Take the unpaid days as PTO (in which case you are ineligible to apply for unemployment) 2.    Take one day as PTO and one day unpaid (in which case you are eligible to apply for one day of unemployment) 3.    Take both days as unpaid (in which case you are eligible to apply for both days as unemployment) Please work with your manager regarding your decisions regarding the unpaid days and your manager will communicate your decision to HR.      Questi...

On behalf of Jim Fox: Dansko Team: In my email last Monday (March 30), I let you know that Dansko would be “reviewing its current compensation and expense structure to determine appropriate adjustments and deferrals.” Over the last week, we have made some very difficult decisions regarding how to balance our two big picture priorities: How can Dansko support employees as best as we can, while also recognizing that we do not have unlimited resources? How do we make sure Dansko can weather this storm, and be as prepared as possible for whatever the “new normal” looks like (whenever that is)? With this framework in mind, Dansko will make certain changes to compensation in an effort to maintain our flexibility given the unprecedented level of economic uncertainty. These changes will take effect April 13, 2020 .  Certain employees, including all members of the Executive Team, will have their pay rates reduced by up to 15% and be subject to additional ...

Dansko, Based on the updated situation and directives from PA Governor Wolf, below is a revised status update: REVISED FACILITY STATUS • Dansko distribution center at 10 Five Star Drive is reopening on a limited basis beginning Monday, April 6th. o Your manager will be in touch with you regarding the distribution center schedule. • Dansko company store will be closed through Sunday, May 3rd. • Dansko offices at 33 Federal Road will be closed through Sunday, May 3rd. Dansko is conducting limited business operations as a “life-sustaining business” in accordance with Pennsylvania Governor Wolf’s directives. We have had teams in yesterday and today to get ready for resuming operations to support retailers, consumers, and especially those healthcare professionals requesting Dansko footwear. We are committed to following best practices to protect the health and safety of our employees consistent with CDC guidelines. These efforts include minimizing the number of employees in ...