L Brands temporarily closes stores, draws down $950 million from existing credit line

(Reuters) – L Brands Inc said on Tuesday it would temporarily close all its stores, including those of Bath & Body Works and Victoria’s Secret, in the United States and Canada through March 29 and that it has drawn down $950 million from an existing credit line due to the coronavirus outbreak.

The company also withdrew its first-quarter earnings forecast, joining an array of U.S. companies.

L Brands said it had $2 billion in cash following the drawdown, which the company called a “proactive measure.” It added all its employees would continue to receive pay and benefits during the temporary closure period.

(Reporting by Praveen Paramasivam in Bengaluru; Editing by Shailesh Kuber)