Melcor Developments Ltd. and Melcor Real Estate Investment Trust have announced that temporary lay-off notices have been given to about 25 per cent of its full-time staff as one of many measures it is taking in response to “unprecedented economic challenges brought about by the COVID-19 global pandemic and the drastic drop in the price of Alberta oil.”
Melcor and the REIT, based in Edmonton, have and are implementing the following:
- 47 per cent reduction to the REIT’s April distribution, announced March 20, 2020;
- 17 per cent reduction to Melcor’s dividend announced March 11, 2020;
- Board remuneration reduction for both companies;
- Wage roll-back for named executive officers and management committee members;
- Reduction in remuneration for all remaining staff;
- Deferred all capital spending;
- Anticipate delayed openings of the golf courses under Melcor management; and
- Working with all clients and stakeholders on a case by case basis.
“These unprecedented times call for measured and intentional action. Melcor moved quickly in our response to COVID-19, both in steps taken to stop the spread, and in actions to preserve cash. These steps, although some of them have been very difficult, were necessary to position the company to weather the COVID-19 storm and resulting economic impact to our businesses and to those of our clients and stakeholders,” said Darin Rayburn, President and Chief Executive Officer of both Melcor and the REIT, in a news release.