Bed Bath & Beyond is laying off 20% of its staff and closing stores
Bed Bath & Beyond’s stock tumbled in early trading after it announced layoffs, store closures and fresh financing plans as it tries to reverse its business’ decline.
The company said it is laying off approximately 20% of employees from its corporate ranks and supply chain, including eliminating its chief operating officer and chief stores officer roles. Its retail footprint is also being reduced, with around 150 Bed Bath & Beyond stores set to close. A list of closures wasn’t revealed.
Bed Bath & Beyond shares fell 25% in premarket trading.
“We are embracing a straight-forward, back-to-basics philosophy that focuses on better serving our customers, driving growth, and delivering business returns,” said interim CEO Sue Gove. “In a short period of time, we have made significant changes and instituted enablers across our entire enterprise to regain our dominance as a preferred shopping destination for our customers’ favorite brands and exciting products.”
New funding of $500 million has also been secured, that will help “strengthen our liquidity and secure our path for the future,” Gove said.
Its sprawling line of in-house brands is also being reduced, with the company looking to “rebalance its assortment and improve inventory.” That means more well-known national brands will be featured more prominently, rather than its own brands. Three of its brands will also face the chopping block, including Studio 3B, Haven and Wild Sage.
The retailer has been in deep trouble over the past few years. It dumped its former CEO Mark Tritton in June after only three years at the helm because he failed to turn around its fortunes. He spearheaded growing its private brands portfolio, a strategy that worked at Target, his previous employer, but failed to catch on at Bed Bath & Beyond.