A Bed Bath & Beyond store is seen on June 29, 2022 in Miami, Florida.
Joe Raedle | Getty Images News | Getty Images
Bed bath and beyond said Wednesday it had secured more than $500 million in new financing and was closing stores and laying off staff as it sought to fix its ailing business.
The moves were part of a wave of change the homewares retailer announced ahead of an early Wednesday investor update.
As part of its turnaround campaign, Bed Bath said it would close around 150 of its ‘low production’ namesake stores and cut staff by around 20% across its corporate and business chain. supply. The company said the sales slowdown has continued in the current fiscal quarter, with same-store sales down 26% so far in the period – a steeper decline than it hasn’t known for years.
To win back customers, Bed Bath said it would bring popular national brands back to its shelves as part of a merchandise overhaul. Acting CEO Sue Gove said all efforts were aimed at regaining the company’s “dominance as a preferred shopping destination”.
“We embrace a simple, back-to-basics philosophy that focuses on better service to our customers, business growth and profitability,” she said in a press release.
The company said it secured a $375 million loan through Sixth Street Partners, a lender that has funded other retailers including JC Penney and Designer Brands. It also expanded the $1.13 billion asset-backed revolving credit facility.
Earlier Wednesday, he said in a filing that he will sell an undisclosed number of shares. The retailer’s stock was down 26% in premarket trading.
Bed Bath also announced other management changes on Wednesday, including the departure of chief operating officer John Hartmann. He said that role and the role of head of stores have been eliminated. His advice ousted former CEO Mark Tritton and director of merchandising Joe Hartsig in late June.
The finances of the company and its activity are in a difficult place. As the retailer spent money on store renovations, new private labels and stock buybacks, its sales slowed and excess inventory piled up. Its net losses widened to $357.7 million in the most recent quarter. At the end of May, he had about $100 million in cash, up from $1.1 billion a year earlier.
This precarious position has jeopardized the relationships with suppliers it relies on to stock shelves and warehouses with merchandise, especially during important seasons like back to school and the Christmas season.
As part of its merchandise overhaul, Bed Bath is dropping some of its nine house brands. He announced that he would be discontinuing three of the exclusive brands: Haven, Wild Sage and Studio 3B. This will greatly reduce the inventory of others.
Shares of Bed Bath have been on a stock-fueled roller coaster for months, soaring as high as $30.06 and falling to a low of $4.38 last year. As of Tuesday’s close, shares are down about 17% year-to-date. Shares closed Tuesday at $12.11, down about 9%.
Read the company’s press release here.
This story is developing. Please check for updates.