New York. US home goods chain Bed Bath & Beyond announced Wednesday that it will close 150 stores and reduce 20% of its workforce, among other measures to try to stabilize its financial position.
Shares of the company, which have accumulated a steep decline in the past year, sank more than 20% today at the open of Wall Street, shortly after this restructuring plan was announced.
We are working quickly and seriously to enhance liquidity and secure our future. “We have thoroughly reviewed our business and today are announcing immediate actions aimed at increasing customer engagement, increasing traffic and regaining market share,” interim CEO Sue Goff said in a statement.
Bed Bath & Beyond plans to close about 150 underperforming stores, out of a total of 955 stores, quickly reduce its expenses, and reduce its workforce by about 20%, which in 2020 was about 55,000 employees.
In order to secure its financial position, the company said it has secured more than $500 million in financing, including expanding a credit line it already has, and is preparing to sell shares to raise cash.
It also announced changes to its sales strategy, which last quarter fell 26% from a year earlier.
In recent weeks, the series has experienced strong stock market volatility after it was identified as a target by small investors and speculators coordinating on internet forums.
After a strong rise, its titles fell sharply once it became known that one of its most important shareholders – whose involvement this year had accumulated and tried to force changes in the company – had divested his shares and opted to make money. From the recent increases in its price.