Bed Bath & Beyond plunges as cash-strapped retailer announces raft of measures, including store closures, job cuts and a stock offering – Proactive Investors USA


Pharma & Biotech
Battery Metals
Pharma & Biotech
Battery Metals
10:40 Wed 31 Aug 2022
Burcon NutraScience grows core protein technology platform as it seeks new innovative discoveries
The homewares retailer also forecast a bigger-than-expected 26% drop in same-store sales for the second quarter and said it would retain its buybuy Baby business, which it had previously put up for sale
Bed Bath & Beyond Inc shares plunged on Wednesday as the cash-strapped retailer announced a raft of measures, including store closures, job cuts and a stock offering to try and turn around its business.
The homewares retailer also forecast a bigger-than-expected 26% drop in same-store sales for the second quarter and said it would retain its buybuy Baby business, which it had previously put up for sale.
Bed Bath & Beyond estimated that comparable-store sales will drop 20% this year as it works through its transformation.
The company’s sales had plunged by 25% and it lost $358 million in its first quarter, leading to the firing of its chief executive officer Mark Tritton in June. The company hired Sue Gove, an independent board director, to replace him on an interim basis.
In a conference call on Wednesday, Gove said the retailer was “continuing to see significant positive momentum” and intended to build its “deep heritage as a retailer,” Reuters reported.
“While there is much work ahead, our road map is clear and we’re confident that the significant changes we’ve announced today will have a positive impact on our performance'” she added, according to the newswire.
Under the new road map, Bed Bath & Beyond said it will close 150 underperforming stores, ditch three of its nine owned brands, including Haven and Wild Sage, and reduce stocks in the remaining six labels to 20% of its total inventory.
Instead, the company will shift focus back to national brands, with firms including Calphalon, Ugg, Dyson and Cuisinart underpinning that strategy. The retailer also shelved a plan to sell buybuy Baby, its infant and toddler merchandise business.
It has also decided to cut about 20% of its corporate and supply chain workforce and will eliminate its chief operating officer and chief stores officer roles. The company has about 32,000 employees, Reuters said.
Bed Bath & Beyond also said it has secured more than $500 million in new financing, including a new $375 million ‘first-in-last-out’ loan, and would launch a stock offering of up to 12 million shares. The retailer had a long-term debt of $1.38 billion and only $107.5 million in cash as of the end of May.
To improve its finances, the retailer said it would cut back on selling, general and administrative expenses by $250 million this year versus last year and rein in capital spending.
In response, Bed Bath & Beyond shares sunk 27% to $9.08 in early New York trading.
Contact the author at
Add related topics to MyProactive
Create your account: sign up and get ahead on news and events
The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is…
Imugene Ltd (ASX:IMU, OTC:IUGNF) CEO and managing director Leslie Chong chats with Andrew Scott from Proactive about the first patient being dosed in the nextHERIZON Phase 2 clinical trial for HER-Vaxx. Chong discusses the positive results already seen from HER-Vaxx as well as in the phase 1…
Prev article
Next article
Only registered members can use this feature.
Copyright © Proactive Group Holdings Inc, 2022
All Rights Reserved – Proactive North America Inc., Proactive Investors LLC.
Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use.
This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping us understand which sections of the website you find most interesting and useful. See our Cookie Policy for more information.
Strictly Necessary and Functional
These cookies are used to deliver our website and content. Strictly necessary cookies relate to our hosting environment, and functional cookies are used to facilitate social logins, social sharing and rich-media content embeds.
Advertising Cookies collect information about your browsing habits such as the pages you visit and links you follow. These audience insights are used to make our website more relevant.
Performance Cookies collect anonymous information designed to help us improve the site and respond to the needs of our audiences. We use this information to make our site faster, more relevant and improve the navigation for all users.



Related posts

Not Making Money on Airbnb? Here Are Your Three Options - Bloomberg

Bloomberg Markets Americas. Live from New York, is focused on bringing you the most important global…
Read more

Ways to optimize your carry on when traveling - SCNow

Start exploring magnificent places with our weekly travel newsletter.So, how do we unpack the hacks…
Read more

Here’s what Airbnb spent on federal lobbying - The Real Deal

For full functionality of this site it is necessary to enable JavaScript. Please Allow Javascript…
Read more

Sign up for The Pro People Community's Daily Digest and get the best of Industry updates, tailored for you.

Leave a Reply

Your email address will not be published. Required fields are marked *