Bed Bath & Beyond is making major changes. As it tries to fend off bankruptcy, the home-goods chain said that it plans to close 150 under-performing stores and is evaluating staffing. "We are embracing a straight-forward, back-to-basics philosophy that focuses on better serving our customers, driving growth, and delivering business returns,” Interim CEO Sue Gove said in a statement.
Though the chain secured more than $500 million in financing, it plans to cut about 20% of its corporate and supply-chain workforce and focus on better-known brands.
The company saw sales decline 26% in its last quarter, according to the statement. Twitter commenters claimed that the store has been in decline for quite some time, regardless. "Bed, Bath and Beyond has been on a downhill slide for the last 5 years. In the beginning it used to be a beautifully run store and now it turned itself into a junk hole," a user said.
Bed, Bath and Beyond has been on a downhill slide for the last 5 years. In the beginning it used to be a beautifully run store and now it turned itself into a junk hole.— Kristy Swanson (@KristySwansonXO) August 31, 2022
Bed Bath & Beyond also plans to keep its Buy Buy Baby unit, which operates 135 stores, rather than pursue a potential sale. In its news release, the company also mentioned the importance of its rewards program for driving traffic, increasing sales, and retaining customers.
Still, some Reddit commenters wondered what to do with their shares in the company in response to the news. A few users said that they don’t see bankruptcy in the future, with one commenter saying, "bankruptcy is pretty much off the table otherwise they wouldn't need to worry about 'restructuring' and building the brand.” Another said, "This was expected... the announcement basically told us to hang on, the company isn't going bankrupt."
Wednesday's news of job cuts and store closures is Bed Bath & Beyond's second major announcement in the past few months. In June, CEO Mark Tritton, a former Target executive who sought to give Bed Bath & Beyond a lift, was pushed out.
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