National retailer Bed Bath & Beyond yesterday announced it will close another 150 stores and cut its workforce by 20% as part of a financial restructuring it hopes will turn around its flagging business.
The company did not name the stores slated for closure but said in a press release the locations have been identified the 150 “lower-producing” stores and commenced the process for closing them.
Bed Bath & Beyond has occupied a large retail space in the Riverhead Centre shopping mall on Route 58 for more than a decade. It leased the space vacated by one of Riverhead Centre’s original phase-two tenants, Linens n Things, when that company closed its stores in 2008.
The Riverhead store is one of nine Bed Bath & Beyond locations that remain open on Long Island, after two previous rounds of closings of nearly 250 stores nationwide since 2020.
The New Jersey-based retailer, listed among the Fortune 500 U.S. companies, said Wednesday its sales in the second second quarter fiscal year 2022, which ended Aug. 27, declined 26% compared to its second quarter last year. The company said it will provide full financial results for the second quarter on Sept. 29.
Bed Bath & Beyond said it is implementing measures to reduce costs and increase its liquidity.
In addition to store closings and layoffs, it will reduce planned capital expenditures by $150 million, more than 37% of the budgeted $400 million in 2022. It will make inventory adjustments including discontinuing one-third of its owned brands and an inventory reduction in its remaining owned brands.
Bed Bath & Beyond also said it has secured commitments for new financing of more than $500 million and is preparing the potential sale of up to 12 million shares of common stock. The potential sale proceeds are expected to be used for a number of corporate purposes, including repurchasing or repaying some of the company’s debt, according to the press release.
Bed bath & Beyond shares closed at $9.53 yesterday, down 68% from their 52-week high of $30.06. Shares fell another 5.6% in pre-market trading today.
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