Bed Bath & Beyond (NASDAQ: BBBY) revealed Wednesday that it had attained over USD500 Million in new financing and would be closing stores and laying off staff as a means to correct its recent struggles. The change comes amid a series of adjustments that the retailer announced before its investor update on Wednesday. Bed Bath & Beyond shares tumbled 25% during premarket trading upon the news.
The company revealed that it would be terminating 20% of its employees from its corporate and supply chain levels, which includes eliminating its chief operating officer and chief stores officer positions. Furthermore, approximately 150 stores are set to close, though the list of closures has yet to be disclosed.
“We are embracing a straight-forward, back-to-basics philosophy that focuses on better serving our customers, driving growth, and delivering business returns,” said interim CEO Sue Gove. “In a short period of time, we have made significant changes and instituted enablers across our entire enterprise to regain our dominance as a preferred shopping destination for our customers’ favorite brands and exciting products.”
Additionally, the company’s in-house brands will be reduced as it strives to “rebalance its assortment and improve inventory.” Ultimately, popular brands will be featured more prominently than its own brands. Three of the company’s brands to be cut are Studio 3B, Haven, and Wild Sage.