Signet Jewelers (SIG), the parent company of specialty jewelry brands, Kay Jewelers, Zales, Jared, H. Samuel, Ernest Jones, Peoples Jewellers, and Piercing Pagoda, announced that it will be closing about 380 stores amid the coronavirus pandemic.

The retailer saw its sales drop to the low single digits as it was forced to close all of its stores in March because of the COVID-19 crisis. The company has begun reopening locations but said that it will keep 150 stores in the U.S. permanently closed as well as about 80 locations in the U.K. Signet Jewelers has about 3,200 stores under all of its brand banners.

Signet also said it will close another 150 or more stores by the end of 2020, bring the total closures to nearly 400 stores. The company has reopened about 1,100 stores during the coronavirus pandemic, with new safety measures in place. Signet drew $900 million from its revolving credit facility during the pandemic and had a debt of $1.3 billion at the end of Q1 2020.

Virginia Drosos, CEO at Signet, said in a statement, “Throughout the COVID-19 crisis, we have prioritized the health and safety of our team members and customers with every decision we make. Our excellent team, operating in a culture of agility and efficiency, has been integral in allowing us to rapidly adapt and respond to this environment, building on the first two years of our ‘Path to Brilliance’ strategy and accelerating our transformation into a digital-first, omni-channel retailer.

“We began our fiscal year with strong Valentine’s Day sales performance, and then quickly pivoted and further adapted our e-commerce operating model to serve customers during stay-at-home restrictions with new technology, virtual consultation and selling solutions. We are gathering valuable insights on customer behaviors and plan to use these learnings to enhance our competitive advantage and emerge stronger from the crisis with optimized virtual and physical footprints to meet our customers where and how they choose to shop.

“We have moved forward in our digital journey while also making significant progress controlling costs, prioritizing investments to drive sustainable growth, and preserving liquidity,” she added.

Signet saw its operating losses reach $291 million for Q1 2020, down from the $2.6 million it lost during the same quarter of 2019. Revenues also declined by more than 40% to $852 million.

Shares of Signet Jewelers stock were down 16.09% as of 2:34 p.m. EDT on Tuesday.

Zales Jewelers
Signet Jewelers is closing about 380 stores by the end of 2020. A shopper walks by a Zales Jewelers store at the Serramonte Mall on February 19, 2014 in Daly City, California. Getty Images/Justin Sullivan
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