Struggling home goods retailer Bed Bath & Beyond will lay off 20% of its workforce and close more than 150 stores in a bid to improve profitability.
The company made this announcement in a strategy update Wednesday (Aug. 31), saying it had also secured commitments for more than $500 million in new financing.
Read more: Investor Ryan Cohen Selling 10% Stake in Bed Bath & Beyond
“We have taken a thorough look at our business, and today, we are announcing immediate actions aimed to increase customer engagement, drive traffic, and recapture market share,” Sue Gove, the retailer’s interim CEO, said in a news release.
“This includes changing our merchandising and inventory strategy, which will be rooted in national brands. Additionally, we are focused on driving digital and foot traffic, as well as optimizing our store fleet.”
While prioritizing national brands — listed as Kitchen Aid, UGG and Nespresso — the company will reduce its private-label “owned brands” by about a third, the strategy update said.
Gove become interim CEO in late June after Bed Bath & Beyond replaced former chief executive Mark Fritton, following a 27% drop in comparable sales.
According to the update, Bed Bath & Beyond will cut jobs on both the corporate and supply chain side of its business. It will also close 150+ “low producing stores.”
Earlier this month GameStop Chairman Ryan Cohen announced his intent to sell his 10% stake in Bed Bath & Beyond. Cohen, who also founded the eCommerce pet supply company Chewy, revealed his stake in BBB in March when he began pushing the company to consider selling its Buybuy Baby brand, if not the entire company.
See also: Bed Bath & Beyond Bleeds Cash, Seeks Buybuy Baby Buyer
Cohen had argued that the baby products chain could be worth several billion dollars and that Bed Bath & Beyond as a whole would be better served if run by a private equity firm.
PYMNTS reported in July that the company was seeking a buyer for Buybuy Baby. In its update Wednesday, Bed Bath & Beyond spoke of accelerating “the growth and value” of the brand.
Gove said the company’s board believes “buybuy BABY will deliver greater value for the company’s shareholders as part of the Bed Bath & Beyond Inc. portfolio.”
For all PYMNTS retail coverage, subscribe to the daily Retail Newsletter.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More