Bed Bath & Beyond Inc. said that it would close roughly 150 of its flagship stores, cut its workforce and bring in fresh cash to help turn around the struggling retail chain, the Wall Street Journal reported. It also made preparations to sell additional shares, a move that would dilute current shareholders and that sent its stock price tumbling. Shares were down 21% at midday Wednesday. The announcements, including laying off about 20% of its corporate and supply-chain staff, were part of a strategic update just days after the end of the company’s latest quarter. The retail chain reported that comparable sales tumbled 26% in the quarter ended Aug. 27 and its operations burned through about $325 million of its cash reserves. Bed Bath & Beyond said it had secured more than $500 million in new financing, which includes the expansion of an existing credit line. The new lifeline for the company is being led by JPMorgan Chase & Co. and Sixth Street Partners. The retailer said that its board had determined not to sell its buybuy Baby chain, which operated 135 stores as of May. The company had hired advisers to explore a potential sale of buybuy Baby. Overall, Bed Bath & Beyond had about 955 total stores as of May 28.
