Bed Bath & Beyond Inc. said it has secured financing and is putting in place a new business strategy to reduce costs as the troubled retailer tries to convince investors, vendors and customers that it has a credible survival plan.
(Bloomberg) — Bed Bath & Beyond Inc. said it has secured financing and is putting in place a new business strategy to reduce costs as the troubled retailer tries to convince investors, vendors and customers that it has a credible survival plan.
The home-goods retailer said it has signed a new $375 million “first-in-last-out” facility with Sixth Street Partners and an expanded $1.13 billion asset-backed revolving credit facility, which is being led by JPMorgan Chase.
To boost falling sales and cut costs, Bed Bath & Beyond said Wednesday that it is cutting 20% of jobs across its corporate and supply-chain operations and closing about 150 lower-producing stores.
“We are working swiftly and diligently to strengthen our liquidity and secure our path for the future,” interim Chief Executive Officer Sue Gove said in a statement Wednesday. Executives will hold a conference call to provide more details at 8:15 a.m. New York time.
The shares had plunged earlier Wednesday after the company said it may sell shares from time to time to pay off its debts. The stock was down 24% at 7:39 a.m. in New York trading.
The retailer is trying to counter growing concerns about its financial outlook. Bed Bath & Beyond faces a shrinking cash pile and is falling behind on payments to vendors, prompting some suppliers to halt or restrict shipments. While the Union, New Jersey-based company became beloved by small-time investors, its equity rally quickly fizzled after activist shareholder Ryan Cohen disclosed this month that he was selling his stake in the company.
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
