Bed Bath & Beyond is closing stores and laying off staff to secure more than $500 million to fix its struggling business, the company announced on Wednesday.
The retailer will close about 150 of its lower producing stores and reduce by about 20% its corporate and supply chain staff. Moves include the departure of Chief Operating Officer John Hartmann as the company is eliminating the chief operating officer and chief stores officer roles.
Bed Bath & Beyond forecast a bigger-than-expected 26% slump in same-store sales for the second quarter.
“We are embracing a straight-forward, back-to-basics philosophy that focuses on better serving our customers, driving growth, and delivering business returns,” interim CEO Sue Gove said in a release. She noted that the company’s efforts are aimed at regaining “the dominance as a preferred shopping destination.”
Earlier Wednesday the company also announced a plan to raise money by issuing new shares. The retailer’s stock was down 26% in premarket trading.
After first quarter sales plunged 25% and the company reported losses of near $350 million, CEO Mark Tritton was ousted in June.
To improve its finances, the retailer said it would cut back on selling, general and administrative expenses by $250 million this year.