Today, Union-based Bed Bath & Beyond announced that it is closing 150 brick-and-mortar locations and laying off approximately 20% of its corporate and supply chain employees.
The home goods company will also exit three of its nine owned labels (Haven, Wild Sage and Studio 3B), and reduce inventory across its six other owned brands (Simply Essential, Nestwell, Our Table, Squared Away, H for Happy and Everhome) by 20%.
Additionally, the company has secured new financing commitments for more than $500 million, including its newly expanded $1.13 billion asset-backed revolving credit facility and a new $375 million “first-in-last-out” facility. The refinancing of the former is being led by J.P. Morgan, and Sixth Street Partners is serving as the lender and agent for the latter facility.
Sue Gove, Bed Bath & Beyond director & interim chief executive officer, said that the changes are aimed at increasing customer engagement, driving traffic, and recapturing market share.
“We are embracing a straight-forward, back-to-basics philosophy that focuses on better serving our customers, driving growth, and delivering business returns,” Grove added. “We command a special presence in the home and baby markets, and we intend to fulfill our opportunity to be the category retailer of choice.”
The company has also realigned its executive leadership team. Mara Sirhal has been appointed to executive vice president and brand president of Bed Bath & Beyond. In addition, Patty Wu has been promoted to executive vice president and brand president of buybuy BABY. The newly created brand president roles will be responsible for each banner’s merchandising, planning and allocation, brand marketing, and stores, and will report directly to Gove.
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