Bed Bath & Beyond announced on Wednesday that it will lay off 20 percent of its corporate and supply-chain employees and close 150 underperforming shops in an effort to reduce expenses amid a sales slump. In pre-market trading, the company’s stock sank by 9%.
Additionally, the corporation stated that it has secured $500 million in fresh finance, including a $375 million loan. It also declared its intention to offer more shares to the public, with the revenues going toward debt reduction.
As consumers have migrated to competitors, Bed Bath & Beyond has struggled with dropping revenues and escalating losses. Earlier this year, GlobalData analyst Neil Saunders noted in a research report that the chain’s stores are “rather disorganized and lack basic merchandising discipline.” While its shares had attracted meme-stock traders, the retailer lost one of its major investors earlier this month when Ryan Cohen, the billionaire founder of online pet food retailer Chewy, sold his stake.
Bed Bath & Beyond also plans to streamline its retail brands by dropping Haven, Wild Sage, and Studio 3B, three of its nine labels.
According to FactSet, the company will close around 15% of its nearly 1,000 stores, given that it has nearly 1,000 locations.
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