A Bed Bath & Beyond store is seen on June 29, 2022 in Miami, Florida.
Joe Raedle | Getty Images News | Getty Images
Bed Bath & Beyond said Wednesday that it secured more than $500 million in new financing and that it is closing stores and laying off staff as it seeks to fix its struggling business.
The home goods retailer announced the moves in a news release ahead of an investor update early Wednesday. It is expected to share more details about its turnaround strategy.
Bed Bath said it will close about 150 of its namesake stores and reduce about its workforce by about 20% across its corporate and supply chain.
The company said that it has gotten a $375 million loan through Sixth Street Partners, a lender that has provided financing to other retailers including JC Penney and Designer Brands. It has expanded $1.13 billion asset-backed revolving credit facility, too.
Earlier Wednesday, he said in a filing that he will sell an undisclosed amount of shares. The announcement caused the retailer’s stock to plummet in premarket trading.
The company also said Wednesday that slowing sales have carried into the current fiscal quarter. It said same-store sales are down 26% so far in the period — a steeper drop that it has seen in years.
Bed Bath announced leadership changes, including that Chief Operating Officer John Hartmann has left the company. Its board ousted former CEO Mark Tritton and Chief Merchandising Officer Joe Hartsig in late June.
The company’s finances and its business are in a challenging spot. As the retailer has spent money on store remodels, new private brands and stock buybacks, its sales have slowed down and its excess inventory racked up. Its net losses widened to $357.7 million in the most recent quarter. As of the end of May, it had about $100 million cash compared with $1.1 billion a year earlier.
That precarious position has endangered relationship with suppliers that it counts on to stock shelves and warehouses with goods — especially during important seasons like back-to-college and the Christmas season.
Bed Bath’s shares have been on a meme stock-fueled rollercoaster ride for months, rocketing up to $30.06 and falling to a low of $4.38 in the past 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 news release here.
This story is developing. Please check back for updates.