Clorox Grapples with Cyberattack Impact, Raising Concerns Over Product Shortages

Clorox Grapples with Cyberattack Impact, Raising Concerns Over Product Shortages


The Clorox Company, renowned for its household brands like Burt's Bees, Glad, and Pine-Sol, is currently facing significant disruptions following a recent cybersecurity attack last month. This attack has cast a shadow over the availability of Clorox products, potentially contributing to shortages in the market.

Clorox disclosed that the cyberattack, which was first identified last month, inflicted substantial damage on portions of its information technology infrastructure, resulting in "widescale disruption" of its operations. The attack has raised concerns about product availability, as the company grapples with the aftermath.

Although Clorox believes it has contained the cyberattack, its operations continue to operate at a reduced pace. The company has been forced to rely on manual procedures to fulfill orders and process operations, as it works diligently to repair its compromised IT infrastructure. Clorox is also in the process of reintegrating systems that were temporarily taken offline due to the attack. It anticipates that a return to full production will be achieved "over time," as stated in a regulatory filing.

While the company is working tirelessly to recover from this cyber incident, it cannot accurately predict how long it will take to return to normal operations. However, Clorox has indicated its intention to commence a gradual shift back to automated order processing starting next week.

The impact of this cyberattack is expected to be "material" in terms of Clorox's first-quarter financial results. This announcement has already affected Clorox's stock, with shares declining by 0.2% during early trading on the New York Stock Exchange, settling at $145.85.

Clorox's situation bears resemblance to a recent cybersecurity issue faced by MGM Resorts International, an operator of numerous Las Vegas Strip resorts. In response to its cyber concerns, MGM Resorts took systems offline, causing inconveniences for guests, including long lines at front desks and issues with phone lines and slot machines.

As Clorox works to recover from this cyber setback, consumers and industry watchers will be keeping a close eye on product availability and potential shortages, hoping for a swift return to normalcy in the market.