REBusinessOnline

Bed Bath & Beyond to Close 150 Stores, Cut Staff, Restructure Debt

The retailer plans to close 150 lower-producing stores and cut its workforce by about 20 percent.

UNION, N.J. — Bed Bath & Beyond Inc. (NASDAQ: BBBY) announced this morning that it will close approximately 150 of its lower-producing stores across the country. The Union-based home goods retailer also revealed that it is cutting its workforce by about 20 percent across its corporate and supply chain staff.

Additionally, the company has secured more than $500 million in new financing, including the expansion of an existing credit line and a new $375 million loan.

Bed Bath & Beyond says that these moves are in effort to meet demand of customers, drive growth and profitability, and improve its balance sheet and cash flows.

“We are embracing a straightforward, back-to-basics philosophy that focuses on better serving our customers, driving growth and delivering business returns,” says Sue Gove, director and interim CEO. Bed Bath & Beyond has retained national firm Russell Reynolds in its search for a permanent CEO.

The retailer is also readjusting its inventory, bringing back popular national brands. The company will discontinue three of its nine private brands, including Haven, Wild Sage and Studio 3B.

In its second fiscal quarter that ended Saturday, Aug. 27, Bed Bath & Beyond reported comparable sales decline of approximately 26 percent compared with the same period a year ago. The company also burned through about $325 million of its cash reserves.

Following these announcements, Bed Bath & Beyond’s stock price tumbled from $12.11 per share at the close of business on Tuesday, Aug. 30, to $8.86 per share this morning. One year ago, the retailer’s stock price traded at $27.54 per share.

Bed Bath & Beyond operates more than 900 locations across North America. A list of specific store closures was not released.

— Kristin Hiller

Content Partners
‣ Arbor Realty Trust
‣ Bohler
‣ Lee & Associates
‣ Lument
‣ NAI Global
‣ Northmarq
‣ Pavlov Media
‣ Walker & Dunlop

Subscribe to the newsletter
Conferences


Webinars on Demand


Read the Digital Editions

Northeast Multifamily & Affordable Housing Business

Midwest Multifamily & Affordable Housing Business

Western Multifamily & Affordable Housing Business

Texas Multifamily & Affordable Housing Business

Southeast Multifamily & Affordable Housing Business

Heartland Real Estate Business

Northeast Real Estate Business

Southeast Real Estate Business

Texas Real Estate Business

Western Real Estate Business

Shopping Center Business

California Centers

Student Housing Business

Seniors Housing Business

Featured Properties