Bed Bath & Beyond stated Wednesday that it secured greater than $500 million in new financing and that it’s closing shops and shedding workers because it seeks to repair its struggling enterprise.
The strikes had been a part of a wave of changes the house items retailer introduced forward of an investor replace early Wednesday.
As a part of its turnaround push, Mattress Tub stated it’ll shut about 150 of its “decrease producing” namesake shops and cut back its workforce by about 20% throughout its company and provide chain workers. The corporate stated slowing gross sales have carried into the present fiscal quarter, with same-store gross sales down 26% to this point within the interval — a steeper drop that it has seen in years.
To win again prospects, Mattress Tub stated it’ll convey again well-liked nationwide manufacturers to its cabinets as a part of a merchandise overhaul. Interim CEO Sue Gove stated the entire efforts are aimed toward regaining the corporate’s “dominance as a most popular buying vacation spot.”
“We’re embracing a straight-forward, back-to-basics philosophy that focuses on higher serving our prospects, driving development, and delivering enterprise returns,” she stated in a information launch.
The corporate stated that it has gotten a $375 million mortgage via Sixth Road Companions, a lender that has offered financing to different retailers together with J.C. Penney and Designer Manufacturers. It has expanded $1.13 billion asset-backed revolving credit score facility, too.
Earlier Wednesday, it stated in a submitting that it will sell an undisclosed amount of shares. The retailer’s inventory was down 26% in premarket buying and selling.
Mattress Tub additionally introduced extra management modifications Wednesday, together with the departure of Chief Working Officer John Hartmann. It stated that function and the chief shops officer function have been eradicated. Its board ousted former CEO Mark Tritton and Chief Merchandising Officer Joe Hartsig in late June.
The corporate’s funds and its enterprise are in a challenging spot. Because the retailer has spent cash on retailer remodels, new non-public manufacturers and inventory buybacks, its gross sales have slowed and its extra stock racked up. Its web losses widened to $357.7 million in the newest quarter. As of the top of Might, it had about $100 million money in contrast with $1.1 billion a yr earlier.
That precarious place has endangered relationship with suppliers that it counts on to inventory cabinets and warehouses with items — particularly throughout vital seasons like back-to-college and the Christmas season.
As a part of its merchandise overhaul, Mattress Tub is dropping a few of its 9 non-public labels. It stated it’ll discontinue three of the unique manufacturers: Haven, Wild Sage and Studio 3B. It can considerably cut back the stock of the others.
Mattress Tub’s shares have been on a meme stock-fueled rollercoaster journey for months, rocketing as much as $30.06 and falling to a low of $4.38 prior to now yr. As of Tuesday’s shut, shares are down about 17% yr so far. Shares closed Tuesday at $12.11, down about 9%.
Learn the corporate’s information launch here.