Bed Bath & Beyond lays off 20% of employees and closes stores

The company said it is laying off about 20% of employees from its corporate ranks and supply chain, including eliminating the positions of chief operating officer and director of stores. Its retail network is also shrinking, with about 150 Bed Bath & Beyond stores closing. The list of closures is not disclosed.

Bed Bath and more (BBBI)shares fell 25% in premarket trading.

“We are committed to a straight-forward, back-to-basics philosophy that aims to better serve our customers, drive growth, and generate profits,” said interim CEO Sue Gove. “In a short period of time, we have made significant changes and implemented support tools throughout our enterprise to reassert our dominant position as the preferred shopping destination for our customers’ favorite brands and exciting products.”

It also secured $500 million in new funding that will help “strengthen our liquidity and secure our path to the future,” Gove said.

Its extensive lineup of own brands is also being dwindled, and the company is looking to “balance its range and improve inventory.” This means that more well-known national brands will be represented more prominently than their own brands. Three of her brands will also face the chopping block, including Studio 3B, Haven and Wild Sage.

The retailer has been in serious trouble for the past few years. In June, she fired her former CEO, Mark Tritton, after only three years at the helm, because he failed to change her fortune. He led the expansion of the private label portfolio. This strategy worked at Target, his previous employer, but failed at Bed Bath & Beyond.

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