Former Bed Bath & Beyond Inc. employees say they haven’t been paid promised severance, the latest sign of the worsening financial squeeze at the home-goods retailer, Bloomberg News reported. Some former employees received an email on Jan. 26 from the human resources department that read, in part: “We are reaching out to you to inform you that there has been a delay with your payment,” according to copies viewed by Bloomberg News. “We recognize the challenges this may cause and appreciate your patience as we work to provide an update.” Former staffers who raised concerns about their severance pay in recent days received an additional email. They asked not to be identified out of concern it would jeopardize their payments. “We are working to provide you with an update, and we are aiming to be back in touch by Wednesday, February 8,” the message said. The email didn’t explain the significance of that date. The delayed payments underscore the mounting financial distress for one of the largest home-goods retailers in the US. On Wednesday, the company confirmed it missed interest payments on its bonds. Last week, Bed Bath & Beyond received a default notice from its loan agent, JPMorgan Chase & Co., warning that it didn’t have enough funds to make payments.
