May 1, 2020 | COVID-19 Update
Posted by Throne Factory on May 1st 2020
On April 10, 2020 we announced the suspension of our e-commerce operations so that we could focus on restructuring our business, including reducing our capital expenditures, funding the remaining open orders with our overseas manufacturer so we did not surrender deposits, arranging terms with vendors who had collateralized containers en route, negotiating with our credit card merchant provider, and reviewing our options regarding stimulus and funding. We also advised of our intention, so long as federal, state, and local regulatory measures had been lifted and our delivery team felt safe, to begin delivering open orders again on May 1, 2020.
As federal guidelines expire and some states partially reopen, we are excited to resume operations, but cannot maintain our self-imposed deadline of May 1, 2020. Throne Factory operates administratively from Texas and logistically from New Jersey. Today, our team, who are based in Texas, Florida, New Jersey, and in New York City, shared their experiences within their respective state, and their willingness to work. Based upon todays collaboration, we have decided to continue our e-commerce and delivery suspension, and revisit the decision at the end of every week, with our next update being on May 8, 2020.
Throne Factory, with two team members remaining in the epicenter throughout, is committed to act equitably and make thoughtful decisions with regards to our customers, our vendors, and our landlords, and our team until such a time we can resume normal operations.
The COVID-19 pandemic has decimated Throne Factory and many of our small business collogues. While we are enlivened to see some states partially reopen, we are mindful of financial hardship the government mandated pause has caused and focused on mitigating the inevitable downstream issues arising from the absence of federal, state, or local guidelines or coordination.
In the coming week we will provide information about our business and talk about the steps were taking to resume operations. In April, we experienced a 57% refund rate, a 70% transit inventory expense, a 200% anticipation inventory expense. In March we experienced cash burn of approximately $45,000 as COVID-19 began to disrupt our operations. In the first ten days of April, our cash burn was $29,600 which led to the shuttering of all non-essential operations. We are working to liquidate cancelled and anticipation inventory to recoup these losses and enabling us sufficient cash flow to resume operations.
Our short-term goal is to develop a realistic fulfillment timeline for past due orders and disseminate the new fulfillment dates to our customers. Shortly thereafter we will survey our customers to determine if they will accept the new fulfillment date or if they prefer a store credit.
We are developing and will soon introduce a store credit program, which will include an opportunity for customers who no longer anticipate a need for our products in the future to convert their store credits into refunds as we sell the product they originally committed to.
In simple terms, every aspect of our business has been disrupted, were working hard to stay in business, and we are going to make sure we are fair in how we distribute our time, money, resources, and products.
For those of you who are safe and unrestricted, our eyes are upon you. For those of you suffering, our hearts are with you. We will update no later than May 8, 2020.