….150 stores closing…..cutting 20% of workforce…..


Bed Bath & Beyond announces store closures, layoffs and new financing in push to fix struggling business

….. 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 moves were part of a wave of changes the home goods retailer announced ahead of an investor update early Wednesday.

As part of its turnaround push, Bed Bath said it will close about 150 of its “lower producing” namesake stores and reduce about its workforce by about 20% across its corporate and supply chain staff. The company said slowing sales have carried into the current fiscal quarter, with same-store sales down 26% for the three-month period ended August 27— a steeper drop that it has seen in years.

To win back customers, Bed Bath said it will bring back popular national brands to its shelves as part of a merchandise overhaul. Interim CEO Sue Gove said all of the efforts are aimed at regaining the company’s “dominance as a preferred shopping destination.”

“We are embracing a straight-forward, back-to-basics philosophy that focuses on better serving our customers, driving growth, and delivering business returns,” she said in a news release.

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 J.C. Penney and Designer Brands. It has expanded $1.13 billion asset-backed revolving credit facility, too.

Earlier Wednesday, it said in a filing that it will sell an undisclosed amount of shares. The retailer’s stock was down 26% in premarket trading.

Bed Bath also announced more leadership changes Wednesday, including the departure of Chief Operating Officer John Hartmann. It said that role and the chief stores officer role have been eliminated. 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 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.……


done…….for………?!

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I reject your reality and substitute my own!



Edited 2 time(s). Last edit at 08/31/2022 08:58AM by NewtonMP2100.

Bed, Bath, and Bezos...

In my area, Target ate their lunch years ago.

Last time I was in BB&B they were selling so many "As Seen On TV" type products. The aisles were full of displays with these cheap gadgets and tchotchkes.

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When you overprice things by 20% then send out millions of "20% off one item" coupons, you get customers that come in, buy ONE item for 20% off, then leave... instead of customers that come in, and buy several items because everything is 20% cheaper.

They did this to themselves...

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Paul F.
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A sword never kills anybody; it is a tool in the killer's hand. - Lucius Annaeus Seneca c. 5 BC - 65 AD
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Good is the enemy of Excellent. Talent is not necessary for Excellence.
Persistence is necessary for Excellence. And Persistence is a Decision.
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Eureka, CA

Quote
Paul F.
When you overprice things by 20% then send out millions of "20% off one item" coupons, you get customers that come in, buy ONE item for 20% off, then leave... instead of customers that come in, and buy several items because everything is 20% cheaper.

They did this to themselves...

You can use multiple 20% off coupons in a single trip. They won’t bug you about it.

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Tiangou

Quote
Paul F.
When you overprice things by 20% then send out millions of "20% off one item" coupons, you get customers that come in, buy ONE item for 20% off, then leave... instead of customers that come in, and buy several items because everything is 20% cheaper.

They did this to themselves...

You can use multiple 20% off coupons in a single trip. They won’t bug you about it.

Oh, I know, I learned that trick... But, most people only get one 20% off coupon, then go, then leave....
Hell, I haven't gotten one for a couple years, but, I still have stack of 'em!

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Paul F.
-----
A sword never kills anybody; it is a tool in the killer's hand. - Lucius Annaeus Seneca c. 5 BC - 65 AD
----
Good is the enemy of Excellent. Talent is not necessary for Excellence.
Persistence is necessary for Excellence. And Persistence is a Decision.
--

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Eureka, CA