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Clorox Cyberattack: Operations of the Cleaning-product Company Disrupted


This Monday, in a regulatory filing, cleaning-product firm Clorox (CLX) confirmed that it was hit by a cyberattack in August. The attack apparently resulted in disruption of the company’s operations, such as the production of their cleaning products.

The company noted that because of the cyberattack, the products are now facing a shortage in their supply. This is consequently making it difficult for the company in keeping up with consumer demand.

Clorox has not yet confirmed as of what products are impacted in the disruption. 

In the aforementioned filing, the company stated that they have detected a suspicious ‘unauthorized’ activity in some of its information technology systems. They further stated that following the revelation, Clorox swiftly took actions in order to stop the attack, such as minimizing their operations for the time being. However, the company now believes that the attack is still on. 

The business said that it manually fills and processes orders. The process of restoring to regular business operations won't start, according to the corporation, until next week.

In a statement published by Clorox, the company says, "Clorox has already resumed production at the vast majority of its manufacturing sites and expects the ramp up to full production to occur over time.”

“At this time, the company cannot estimate how long it will take to resume fully normalized operations," it added. 

Adding to this, the company notes that due to the cyber activity and delay in its operation, they may compromise their current-quarter financial amount materially. However, Clorox also notes that any longer term impact would in fact be premature, “given the ongoing recovery.”

In its early trading, Clorox shares had already fallen about 2%. The American global manufacturer and marketers are popular for their professional products and household staples such as bleach, detergents and cleaners. 

A similar case of cyberattack was recently observed, in which operation of popular resort and casino giant MGM Resorts were disrupted. The cyberattack disrupted a significant portion of its operations, preventing customers from making room charges or using their digital keys to enter their rooms.