Dear Fans, Friends, and Family, Today we find ourselves in unprecedented times. Strange and challenging for every person, place, and business around the world—this is truly a global crisis.
For starters, we’d like to acknowledge the health challenge that COVID-19 poses, whether by personal illness or that of a loved one. Our well-wishes are with all of you.
In this incredibly difficult time, Robin and I want to be transparent with our thoughts and plans—for Heath to get back on track, we must downsize. It breaks our hearts to share the news that we must part ways with some of our employees.
Today is a day we could not have predicted. Pausing the business suddenly for 2–3 months was never part of our plan. We have insurance for fires and earthquakes, given our California location. But nothing covers this type of unexpected hit.
The past few weeks have been the hardest and most intense of our lives. We’ve spent 18 years building Heath—a company that models great work, in a healthy and happy environment, while treating each other fairly and respectfully. And the product we create brings joy to our customers on every level. As a whole, this is a remarkable accomplishment and no easy feat.
Our revenue in March dropped 50%. We project next quarter will drop significantly given our stores are closed, with the exception of our website. With these numbers, it’s not possible for us to continue in the same way without losing the entire business. While we regularly hit our financial goals, much of our income is reinvested—bettering the company through jobs, pay increases, our ESOP, equipment, and facilities.
As we weather this storm, a large portion of Heath will go idle. During this time, we’ll remain open for business, however our production and showrooms are subject to California’s Shelter-in-Place, which at this time, has no end date. Online and shipping will continue at the capacity they’re able, given the circumstances. A smaller team will continue at Heath, helping us get to the other side. As owners, we will take a pay cut, and many will move to truncated schedules with reduced pay, as well.
Heath is a 70-year-old company that’s seen and survived a great deal. Edith and Brian birthed Heath with a depression-era mindset—resourceful and perseverant. In 2003 we revived it before it disappeared, and sheltered it through the financial crisis of 2008. We’re in rough waters now, but we’re giving it all we have—we will get through this and thrive.
Thank you from the bottom of our hearts, for all your support—thus far and to come. Truly, we would not be here without you.
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