A Bed Bath & Beyond store is seen in Miami, Florida on June 29, 2022.
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Bed Bath & Beyond announced Wednesday that it has secured more than $500 million in new financing and is closing stores and laying off employees to repair its ailing business.
The homewares retailer announced the moves in a press release ahead of an investor update early Wednesday. It is expected to provide more details on its turnaround strategy.
Bed Bath said it will close about 150 of its namesake stores and reduce its workforce by about 20% across its business and supply chain.
The company said it received 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.
A filing earlier Wednesday said it would sell an undisclosed number of shares. The announcement sent the retailer’s shares plummeting in premarket trading.
The company also said on Wednesday that the decline in sales has spilled over into the current fiscal quarter. Same-store sales are down 26% so far in the period — a steeper decline than it’s been in years.
Bed Bath announced leadership changes including the departure of Chief Operating Officer John Hartmann from the company. The board ousted former CEO Mark Tritton and chief merchandising officer Joe Hartsig in late June.
The company’s finances and business are in a challenging position. As the retailer has spent money on store remodels, new private labels and stock buybacks, its sales have slowed and its excess inventory has accumulated. Net losses increased to $357.7 million in the most recent quarter. At the end of May, it had about $100 million in cash on hand, compared to $1.1 billion a year earlier.
That precarious position has jeopardized relationships with suppliers it can rely on to keep shelves and warehouses stocked — particularly during key times of the year like back to school and the holiday season.
Bed Bath’s shares have been on a meme-stock-driven roller coaster for months, rallying to $30.06 and falling to a low of $4.38 over the past year. As of Tuesday’s close, shares are down about 17% year-to-date. Shares closed at $12.11 on Tuesday, down about 9%.
Read the company’s press release here.
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