NEW YORK (AP) — Bed Bath & Beyond stock fell nearly a quarter of its value Wednesday after the struggling home goods retailer announced a restructuring that included store closures, job cuts and a possible public offering. I lost 1.
The company said it has raised more than $500 million in new funding and is cutting its workforce by 20%. It plans to close about 150 stores with the same name, but keep the Bye Bye Baby chain.
Bed Bath & Beyond also said it would return to its original strategy of focusing on domestic brands rather than imposing its own store label. It reverses the strategy adopted by former CEO Mark Tritton, who was sacked in June after less than three years at the helm amid sluggish sales and supply chain problems. At the meeting, management vowed that the difference in the new approach would be not to return to a “high inventory” merchandising approach.
Mara Sirhal, executive vice president of Bed Bath & Beyond brands and brand president, said in a phone call that customers tell us, “National brands are an important part of the shopping experience at our company.” . The company is working closely with its suppliers, she said.
The retailer said in a Securities and Exchange Commission filing Wednesday that it may offer, issue or sell shares of its common stock at any time. Proceeds will be used to pay down debt.
Union, New Jersey-based Bed Bath & Beyond has been facing a lot of turmoil lately. In mid-August, billionaire and shareholder activist Ryan Cohen, co-founder of online pet supply retailer Chewy Inc., bought Bed Bath just months earlier and promised big changes. Sold all shares of & Beyond.
The company said it was still looking for a permanent CEO. Tritton’s successor on the board was Sue Gove as interim CEO. Tritton was previously Target’s chief merchandising officer, and his 30-plus new brands he introduced were key to the company’s revival.
Chief Operating Officer John Hartman is leaving the company, eliminating the position.
The company said it expects organic sales to decline 26% in the second quarter. We plan to report the final results next month.
The stock fell 24%, or $2.92, to $9.19 in early trading on Wednesday after dropping more than 9% to $12.11 in Tuesday’s regular market.
suggest a fix