Live Updates: Bed Bath & Beyond Will Cut Jobs Despite Raising $500M
Home goods retailer Bed Bath & Beyond said it has secured more than $500 million in new funding and plans to cut jobs and close stores in a bid to turn around its business.
The company’s financial troubles have all but been overshadowed in the past month as its renewed popularity as a stock meme and one of its biggest investors selling his entire stake in the company has led to weeks of volatility. of the share price.
Bed Bath & Beyond in June reported dismal first-quarter results that beat expectations and showed the retailer had just $108 million in cash, down from $1.1 billion in the same quarter a year earlier . However, the company announced on Wednesday that it had received a $375 million loan from Sixth Street Partners and extended a $1.13 billion asset-backed revolving credit facility led by JPMorgan.
In order to cut costs, the company will cut its supply chain workforce by about 20% and plans to close about 150 stores.
Bed Bath & Beyond has announced that it will exit one-third of its own brands. However, he plans to bring back popular national brands like Kitchen Aid, UGG and Nespresso.
Earlier Wednesday, Bed Bath & Beyond said in a filing with the Securities and Exchange Commission that it may sell up to 12 million shares of common stock, the proceeds from which could repay debt, repurchase stock or fund future purchases.
The developments sent shares of Bed Bath & Beyond down 31.5% in premarket trading on Wednesday, continuing weeks of volatility.
The company said it expected second-quarter revenue to be $1.45 billion, missing analysts’ forecast for $1.5 billion. Comparable sales, a popular industry measure, are expected to decline 20% for the year.