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March 31, 2020 | COVID-19 Update

March 31, 2020 | COVID-19 Update

Posted by Throne Factory on Mar 31st 2020

Throne Factory, like many of our small business and entrepreneur partners and customers, is experiencing significant disruptions to our operations due to the COVID-19 pandemic. While we continue to adjust to this unusually dynamic situation, we want to share how our business has been impacted, decisions we have made to ensure we’re here after the crisis subsides, and tell you a little about our business model – in hopes that you will support us through this crisis.

Suspension of Deliveries until April 30

Altogether, more than 250 million Americans – about 75% of the country – are under a state of emergency or have been told to remain sheltered. Our pricing metrics coupled with the size and fragility of our items cause us to partner with independent delivery professionals - who typically drive our leased or rented trucks from our New Jersey warehouse to their home state. In considerations of the numerous state restrictions, coupled with the CDC Domestic Travel Advisory for New York, New Jersey, and Connecticut, we have elected to suspend deliveries until April 30, 2020.

Supply Chain Disruption

Our products are made in Indonesia. We began experiencing supply chain disruptions in late December as China began their fight with COVID-19. Our containers are often transported from Indonesia to China, where they are then loaded on larger ships and brought to the United States. We experienced major delays of over two months on multiple containers in the first quarter of 2020.

Indonesia, like much of the world, is suffering through the COVID-19 pandemic and has placed restrictions similar to what we’re experiencing here in the United States. Due to this, our Indonesian team has suspended operations, which effects several of our purchase orders.

Our team, as the majority of the county of Indonesia celebrates Ramadan, which this year begins April 23 and ends May 23. During this time, our production decreases 65%. After Ramadan, there are two official holidays for Idul Fitri, when there will be no production for approximately one week. We are in daily communication with our Indonesian team and are collaboratively seeking solutions for the supply chain disruption surrounding COVID-19 and Ramadan and subsequent holidays. We will post more about our supply chain as updated information becomes available.

Making Financially Responsible Decisions

We have reduced capital expenditures by returning two of our corporate delivery truck rentals, and temporarily sub-leasing space in our New Jersey warehouse to another company that falls under the essential business category. We are actively seeking opportunities to offset the cost of our remaining leased delivery truck and are seeking efficiencies with our customer service expenses.

We Need Your Support.

Our customers are mostly small businesses and entrepreneurs in the event equipment rental, event planning, or event venue business. While events occur year-round, May through October is peak, with November-January next up, and February being the least busy. In early March 2020, the governmental restrictions on events due to the COVID-19 pandemic caused a mass cancellation of events, virtually eliminating our customer base and causing massive cancellations and refunds. If you have an order with us, we ask for your patience so that we can try and make it through this. We will be making some changes to our websites in the coming days as we learn more about our supply chain and how to navigate this global economic crisis. We’ve had some questions about our business practices recently, so we’ve published a little about our business strategy here