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Bed Bath & Beyond will close 150 stores and cut 20% of its staff

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  • Bed Bath & Beyond will close 150 stores.
  • The company will also cut 20% of its workforce.
  • The measure is to try to stabilize their financial situation.

Popular home goods chain Bed Bath & Beyond announced on Wednesday, August 31 that it is going to close 150 stores and cut 20% of its workforce, among other measures to try to stabilize its financial situation.

The company’s shares, which have experienced a sharp drop in the last year, sank more than 20% today at the opening of Wall Street, shortly after announcing this restructuring plan.

Bed Bath & Beyond will close 150 stores

Bed Bath & Beyond will close 150 stores and cut 20% of its staff
Photo: AP

“We are working quickly and diligently to bolster our liquidity and secure our future. We have thoroughly reviewed our business and are today announcing immediate actions that seek to increase customer engagement, drive traffic and regain market share,» interim CEO Sue Gove said in a statement.

Bed Bath & Beyond plans to close some 150 stores with poor results, out of a total of 955, and quickly reduce its expenses, with a reduction of approximately 20% of its workforce, which in 2020 was about 55,000 employees, reported EFE.

Bed Bath & Beyond changes

Photo: Twitter

Also, in order to secure its financial position, the company said it has secured more than $500 million in financing, including expanding a line of credit it already had, and is preparing to sell shares to raise cash.

The retailer also announced changes to its sales strategy, which in the most recent quarter plunged 26% from a year earlier. In recent weeks, the chain has suffered strong fluctuations on the stock market after being identified as a target by small investors and speculators who coordinate on internet forums.

Hundreds of employees will be laid off

Photo: Shutterstock

After a strong rise, its stocks fell sharply once it became known that one of its most important shareholders — who had tried to force changes in the company — had gotten rid of his shares and opted to make cash taking advantage recent rises in its price.

Mara Sirhal, executive vice president and brand president of the Bed Bath & Beyond brand division, said on a call that customers have communicated that «national brands are an important part of their shopping experience with us.» The company said it is working closely with its suppliers,» according to AP.

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