Bed Bath & Beyond said Wednesday it was cutting 20 percent of its corporate and supply chain staff and closing 150 underperforming stores as it looks to cut costs amid falling sales. The company’s shares fell 9% in premarket trading.
The company also said it has lined up $500 million in new financing, including a $375 million loan. It also announced plans to sell more shares to the public, with the proceeds going to pay down debt.
Bed Bath & Beyond has been struggling with declining sales and growing losses as consumers have moved to competitors. Earlier this year, GlobalData analyst Neil Saunders noted in a research report that the chain’s stores are “cluttered and lack basic merchandising discipline.” While its stock had attracted meme traders, the retailer lost one of its biggest investors earlier this month when Ryan Cohen, the billionaire founder of online pet food company Chewy, sold his share.
Bed Bath & Beyond said it will also streamline its store brands by discontinuing three of its nine labels: Haven, Wild Sage and Studio 3B.
The company has nearly 1,000 locations, which means it will close about 15% of its stores, according to FactSet.
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