May 29, 2020 | COVID-19 Update
Posted by Throne Factory on May 29th 2020
This is our May 29, 2020 update.
COVID-19 pandemic has decimated Throne Factory and many of our small business collogues. While there are glimmers of good news for small business the impact of the COVID-19 restrictions on the event industry, which accounts for ninety percent of our business, remains severe. Our previous updates disclosed cost attributed to the COVID-19 related disruptions to our operations as well as our desire to refocus our business, reduce our capital expenditures, and negotiate with key vendors. We further discussed our desire to liquidate cancelled and anticipation inventory to recoup the cash-burn directly related to the government mandated pause so that we have sufficient cash to resume operations.
We have determined that past due and pre-orders will be delayed by 270 days based upon the aforesaid capital expenditure reduction and liquidation efforts to date, a best-case cash-flow allocation to fulfillment, and the resumption of pre-pandemic manufacturing and supply chain levels.
On June 1, 2020, we will begin formally surveying our customers to determine if they will accept the new fulfillment date or if they prefer a store credit. Upon completion of the aforesaid survey, we will 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.
It is our intention to resume fulfillment operations the week of June 15, 2020.
We would like to reiterate our gratitude to the many customers who empathize with our attempt to remain in business so we can manufacture and distribute our incredible products.
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.
Throne Factory 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.
Our next update is June 5, 2020.