Bed Bath & Beyond announced in a financial update for investors that it is closing about 150 stores.
The company is also cutting its corporate staff by about 20% as sales fell 25% last quarter.
The company is one of several to initiate a round of sweeping layoffs in recent months.
The rise and fall of Bed Bath & Beyond: Once one of America's most beloved big-box retailers, it's now on the brink
Since its founding in 1971, Bed Bath & Beyond has been a go-to destination for home goods.
In recent years, however, the retailer has shown significant signs of struggle, including slumping sales and executive turmoil.
We took a look at the rise and fall of the iconic big-box retailer.
Once the golden child of big-box stores, Bed Bath & Beyond is now struggling to stay afloat.
The company reported a $358 million net loss in its most recent quarter, the latest in a series of setbacks for the home goods store. In June, Bed Bath & Beyond announced it was replacing CEO Mark Tritton and a number of other executives in yet another attempt to reorganize its leadership.
Now, analysts are saying the company is in its "end days," with some speculating it will become the next meme stock, following in the footsteps of Gamestop before it.
Bed Bath & Beyond was once a leading home goods retailer, appealing to shoppers across the nation with its strategy of abundance. The beloved store, which lined strip malls nationwide, became known for its huge assortment of products spanning every color and style.
Over the years, it became a go-to for just about anything for the home and — true to its name — beyond.
We took a closer a look at Bed Bath & Beyond's rise from a small linen store in New Jersey to a major national retail chain now on the brink of collapse.
Bed Bath & Beyond plans to close about 150 of its stores and cut its corporate workforce by 20%.
The announcement was made ahead of a financial-update call on Wednesday. Shares of the retailer's stock fell by more than 24% after Bed Bath & Beyond revealed sales across its stores had dropped 25% in the previous quarter.
The company plans to cut costs by $250 million in 2022 via layoffs and store closures and has already begun shutting down some of its flagship stores that it has identified as underperforming.
"The company continues to evaluate its portfolio and leases, in addition to staffing, to ensure alignment with customer demand and go-forward strategy," Bed Bath & Beyond said in a press release.
The retailer also plans to shed a third of its flagship brands and expand further into national brands. It also announced that the Buybuy Baby chain of stores will remain with the company.
"We have taken a thorough look at our business, and today, we are announcing immediate actions aimed to increase customer engagement, drive traffic, and recapture market share," Sue Gove, director and interim chief executive officer, said in the press release. "This includes changing our merchandising and inventory strategy, which will be rooted in National Brands. Additionally, we are focused on driving digital and foot traffic, as well as optimizing our store fleet. We believe these changes will have a widespread positive impact across customer experience, inventory assortment, supply chain execution and cost structure."
Bed Bath & Beyond is one of several companies to initiate a sweeping round of layoffs in recent months as shoppers have begun to cutback amid soaring inflation and concerns of an impending recession.
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