Those in need of Clorox bleach or any other products from the brand may face difficulties in finding them on store shelves in the upcoming months. This unfortunate situation is a result of a recent cyberattack that has disrupted the company’s production process.
The breach in cybersecurity was initially discovered on August 14th when Clorox identified unauthorized activity across several IT systems. The company disclosed this information in a Securities and Exchange Commission filing on Monday.
In response to the attack, Clorox promptly took the affected systems offline and operated with reduced production capacity. This has led to significant challenges in maintaining product availability for consumers.
An evaluation of the cyberattack revealed extensive damage to Clorox’s IT infrastructure. As a result, the company spent the last month repairing its ordering systems and gradually bringing them back online. According to the filing, Clorox expects to resume normal order processing by the week of September 25th.
However, due to limited output and manual ordering, Clorox predicts that shortages will impact sales until March.
Clorox acknowledged, “Due to order processing delays and an elevated level of product outages, the company now anticipates a significant impact on Q1 financial results.”
The filing states that an internal review confirmed that the unauthorized cyber activity has been “contained” thanks to Clorox’s implemented cybersecurity measures. Following the public filing, shares of the Clorox Co. dropped approximately 2.4% on Monday, closing at $142.70.
This cyberattack is not the sole cause of Clorox’s product shortages in recent years. The outbreak of the COVID-19 pandemic in 2020 resulted in a surge in demand for Clorox disinfectant wipes and other sanitizing products, surpassing the company’s production capacity well into the following year.
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