Bed Bath & Beyond will close 150 of its stores and reduce its workforce by 20 percent as an attempt to improve the struggling business.
The home goods retailer forecasted those reductions will save $250 million in the current fiscal year.
It also stated that it is considering selling more shares to improve its finances and that it has secured more than $500 million in new financing.
However, it will retain its Buy Buy Baby chain, which it had considered selling earlier this year.
After a lengthy downturn in sales, the company recently returned to its original strategy of focusing on national brands rather than promoting its own store label.
This goes against the plans of the company’s previous CEO, Mark Tritton, who was fired in June after less than three years in the role.
It announced that it will discontinue one-third of its retail brands, which had been launched in the previous year or so.
Mara Sirhal, brand president of Bed Bath & Beyond said: “There’s still an incredible degree of love for Bed Bath & Beyond.
“We must get back to our rightful place as the home-category destination, and our goal is to achieve this by leading with the products and brands our customers want.”
The company had 955 stores in operation as of May.
It included 769 Bed Bath & Beyond stores, 135 Buy Buy Baby stores, and 51 Harmon, Harmon Face Values, or Face Values locations.
It employed around 32,000 people as of February.
As the company approaches the key holiday shopping season, time is of importance.
The retailer estimates a 26 percent drop in comparable sales in its fiscal second quarter.
Sirhal stated that the business wants to return to being a place where customers can find unique things.
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She emphasized Bed Bath & Beyond was the first to offer customers devices such as the air fryer and the single-serve coffee machine.
The company said that it is still looking for a permanent CEO.
Board member Sue Gove took over as interim CEO, after Tritton.
Chief Operating Officer John Hartmann is departing the firm, and the role will be eliminated.
Source: The Washington Post