Aug 31 (Reuters) – Bed Bath & Beyond Inc ( BBBY.O ) said on Wednesday it had signed deals for more than $500 million in new financing and would close 150 stores, cut jobs and revise its strategy in merchandising in an effort to turn around its loss-making operations. Investors, however, remain concerned that the retailer’s plan, announced in a strategic briefing, will do little to improve Bed Bath & Beyond’s business as shares fell 25%. The retailer also announced a plan to raise money by issuing new shares. The big box chain – once considered a so-called “category killer” in home and bath products – has seen its fortunes falter after trying to sell more of its own brand or private label products. The COVID-19 pandemic, the supply chain crisis and consumers leaving the markets due to high inflation also hit the chain’s sales. Sign up now for FREE unlimited access to Reuters.comSign up Bed Bath & Beyond forecast a bigger-than-expected 26% drop in same-store sales for the second quarter and said it would keep the buybuy Baby market, which it had put up for sale. Efforts to sell buybuy Baby had been encouraged by GameStop Corp ( GME.N ) Chairman Ryan Cohen, the company’s biggest investor until this month, when he sold his 9.8 percent stake, sending shares tumbling. vertically. Once known for offering 20% off coupons to many shoppers, Bed Bath & Beyond has revamped its merchandise in recent years to focus on private label products, including Our Table cookware. read more The chain is now abandoning that strategy, shedding three of its private-label brands and rebranding national brands with labels such as Calphalon, Ugg, Dyson and Cuisinart supporting that strategy, executives said on a conference call. Executives said Bed Bath & Beyond is cutting about 20 percent of its corporate and supply chain workforce and eliminating the CEO and Store Manager roles. The company employs approximately 32,000 workers. Top brass sought to reassure analysts that sellers were still supporting the company, a key indicator of its long-term financial prospects. Suppliers will ask for more money upfront or stop shipping goods if they believe retailers can no longer pay them. Signage is seen at a Bed Bath & Beyond store in Manhattan, New York, U.S., June 29, 2022. REUTERS/Andrew Kelly/File Photo “As we’ve managed our cash burn, we’ve seen changes in the suppliers we manage,” said Chief Financial Officer Gustavo Arnal, adding that the company is managing the situation “on a one-to-one basis.” First-quarter sales fell 25% and it lost $358 million, leading to the firing of CEO Mark Tritton in June. The company hired Sue Gove, an independent board director, to replace him on an interim basis. On Wednesday, Gove said the retailer “continues to see significant positive momentum” and intended to build on its “deep legacy as a retailer”. “While there is a lot of work ahead, our roadmap is clear and we are confident that the significant changes we announced today will have a positive impact on our performance,” he said on a conference call. The retailer also said it extended an existing loan and took out a new $375 million first-to-last loan and will launch a stock offering of up to 12 million shares. Arnal said 50 to 60 stores will close in a “first wave” heading into the balance of Bed Bath & Beyond’s fiscal year, which ends in February. The company has approximately 900 stores. “They’re running out of cash and they’re desperate to raise cash just to keep the business going,” said Jim Dixon, an equity sales trader at Mirabaud. To improve its finances, the retailer said it will cut SG&A expenses by $250 million this year compared with last year and curb capital spending. The company also estimates that comparable-store sales will fall 20% this year as it works through its transformation. “We are broadly satisfied that the measures announced today … will ease the pressure on the company, allowing it to continue trading,” said Neil Saunders, CEO of GlobalData. Sign up now for FREE unlimited access to Reuters.comSign up Reporting by Uday Sampath and Deborah Sophia and Bansari Kamdar in Bengaluru. Additional reporting by Siddharth Cavale, Jessica DiNapoli and Arriana Mclymore. Edited by Arun Koyyur and Jonathan Oatis Our Standards: The Thomson Reuters Trust Principles.
title: “Bed Bath Beyond To Cut Jobs Close Stores In Effort To Reverse Losses Klmat” ShowToc: true date: “2022-12-03” author: “Samantha Portsche”
Aug 31 (Reuters) – Bed Bath & Beyond Inc ( BBBY.O ) said on Wednesday it had signed deals for more than $500 million in new financing and would close 150 stores, cut jobs and revise its strategy in merchandising in an effort to turn around its loss-making operations. Investors, however, remain concerned that the retailer’s plan, announced in a strategic briefing, will do little to improve Bed Bath & Beyond’s business as shares fell 25%. The retailer also announced a plan to raise money by issuing new shares. The big box chain – once considered a so-called “category killer” in home and bath products – has seen its fortunes falter after trying to sell more of its own brand or private label products. The COVID-19 pandemic, the supply chain crisis and consumers leaving the markets due to high inflation also hit the chain’s sales. Sign up now for FREE unlimited access to Reuters.comSign up Bed Bath & Beyond forecast a bigger-than-expected 26% drop in same-store sales for the second quarter and said it would keep the buybuy Baby market, which it had put up for sale. Efforts to sell buybuy Baby had been encouraged by GameStop Corp ( GME.N ) Chairman Ryan Cohen, the company’s biggest investor until this month, when he sold his 9.8 percent stake, sending shares tumbling. vertically. Once known for offering 20% off coupons to many shoppers, Bed Bath & Beyond has revamped its merchandise in recent years to focus on private label products, including Our Table cookware. read more The chain is now abandoning that strategy, shedding three of its private-label brands and rebranding national brands with labels such as Calphalon, Ugg, Dyson and Cuisinart supporting that strategy, executives said on a conference call. Executives said Bed Bath & Beyond is cutting about 20 percent of its corporate and supply chain workforce and eliminating the CEO and Store Manager roles. The company employs approximately 32,000 workers. Top brass sought to reassure analysts that sellers were still supporting the company, a key indicator of its long-term financial prospects. Suppliers will ask for more money upfront or stop shipping goods if they believe retailers can no longer pay them. Signage is seen at a Bed Bath & Beyond store in Manhattan, New York, U.S., June 29, 2022. REUTERS/Andrew Kelly/File Photo “As we’ve managed our cash burn, we’ve seen changes in the suppliers we manage,” said Chief Financial Officer Gustavo Arnal, adding that the company is managing the situation “on a one-to-one basis.” First-quarter sales fell 25% and it lost $358 million, leading to the firing of CEO Mark Tritton in June. The company hired Sue Gove, an independent board director, to replace him on an interim basis. On Wednesday, Gove said the retailer “continues to see significant positive momentum” and intended to build on its “deep legacy as a retailer”. “While there is a lot of work ahead, our roadmap is clear and we are confident that the significant changes we announced today will have a positive impact on our performance,” he said on a conference call. The retailer also said it extended an existing loan and took out a new $375 million first-to-last loan and will launch a stock offering of up to 12 million shares. Arnal said 50 to 60 stores will close in a “first wave” heading into the balance of Bed Bath & Beyond’s fiscal year, which ends in February. The company has approximately 900 stores. “They’re running out of cash and they’re desperate to raise cash just to keep the business going,” said Jim Dixon, an equity sales trader at Mirabaud. To improve its finances, the retailer said it will cut SG&A expenses by $250 million this year compared with last year and curb capital spending. The company also estimates that comparable-store sales will fall 20% this year as it works through its transformation. “We are broadly satisfied that the measures announced today … will ease the pressure on the company, allowing it to continue trading,” said Neil Saunders, CEO of GlobalData. Sign up now for FREE unlimited access to Reuters.comSign up Reporting by Uday Sampath and Deborah Sophia and Bansari Kamdar in Bengaluru. Additional reporting by Siddharth Cavale, Jessica DiNapoli and Arriana Mclymore. Edited by Arun Koyyur and Jonathan Oatis Our Standards: The Thomson Reuters Trust Principles.
title: “Bed Bath Beyond To Cut Jobs Close Stores In Effort To Reverse Losses Klmat” ShowToc: true date: “2022-11-29” author: “Katrina Watkins”
Aug 31 (Reuters) – Bed Bath & Beyond Inc ( BBBY.O ) said on Wednesday it had signed deals for more than $500 million in new financing and would close 150 stores, cut jobs and revise its strategy in merchandising in an effort to turn around its loss-making operations. Investors, however, remain concerned that the retailer’s plan, announced in a strategic briefing, will do little to improve Bed Bath & Beyond’s business as shares fell 25%. The retailer also announced a plan to raise money by issuing new shares. The big box chain – once considered a so-called “category killer” in home and bath products – has seen its fortunes falter after trying to sell more of its own brand or private label products. The COVID-19 pandemic, the supply chain crisis and consumers leaving the markets due to high inflation also hit the chain’s sales. Sign up now for FREE unlimited access to Reuters.comSign up Bed Bath & Beyond forecast a bigger-than-expected 26% drop in same-store sales for the second quarter and said it would keep the buybuy Baby market, which it had put up for sale. Efforts to sell buybuy Baby had been encouraged by GameStop Corp ( GME.N ) Chairman Ryan Cohen, the company’s biggest investor until this month, when he sold his 9.8 percent stake, sending shares tumbling. vertically. Once known for offering 20% off coupons to many shoppers, Bed Bath & Beyond has revamped its merchandise in recent years to focus on private label products, including Our Table cookware. read more The chain is now abandoning that strategy, shedding three of its private-label brands and rebranding national brands with labels such as Calphalon, Ugg, Dyson and Cuisinart supporting that strategy, executives said on a conference call. Executives said Bed Bath & Beyond is cutting about 20 percent of its corporate and supply chain workforce and eliminating the CEO and Store Manager roles. The company employs approximately 32,000 workers. Top brass sought to reassure analysts that sellers were still supporting the company, a key indicator of its long-term financial prospects. Suppliers will ask for more money upfront or stop shipping goods if they believe retailers can no longer pay them. Signage is seen at a Bed Bath & Beyond store in Manhattan, New York, U.S., June 29, 2022. REUTERS/Andrew Kelly/File Photo “As we’ve managed our cash burn, we’ve seen changes in the suppliers we manage,” said Chief Financial Officer Gustavo Arnal, adding that the company is managing the situation “on a one-to-one basis.” First-quarter sales fell 25% and it lost $358 million, leading to the firing of CEO Mark Tritton in June. The company hired Sue Gove, an independent board director, to replace him on an interim basis. On Wednesday, Gove said the retailer “continues to see significant positive momentum” and intended to build on its “deep legacy as a retailer”. “While there is a lot of work ahead, our roadmap is clear and we are confident that the significant changes we announced today will have a positive impact on our performance,” he said on a conference call. The retailer also said it extended an existing loan and took out a new $375 million first-to-last loan and will launch a stock offering of up to 12 million shares. Arnal said 50 to 60 stores will close in a “first wave” heading into the balance of Bed Bath & Beyond’s fiscal year, which ends in February. The company has approximately 900 stores. “They’re running out of cash and they’re desperate to raise cash just to keep the business going,” said Jim Dixon, an equity sales trader at Mirabaud. To improve its finances, the retailer said it will cut SG&A expenses by $250 million this year compared with last year and curb capital spending. The company also estimates that comparable-store sales will fall 20% this year as it works through its transformation. “We are broadly satisfied that the measures announced today … will ease the pressure on the company, allowing it to continue trading,” said Neil Saunders, CEO of GlobalData. Sign up now for FREE unlimited access to Reuters.comSign up Reporting by Uday Sampath and Deborah Sophia and Bansari Kamdar in Bengaluru. Additional reporting by Siddharth Cavale, Jessica DiNapoli and Arriana Mclymore. Edited by Arun Koyyur and Jonathan Oatis Our Standards: The Thomson Reuters Trust Principles.
title: “Bed Bath Beyond To Cut Jobs Close Stores In Effort To Reverse Losses Klmat” ShowToc: true date: “2022-11-16” author: “Robert Chandler”
Aug 31 (Reuters) – Bed Bath & Beyond Inc ( BBBY.O ) said on Wednesday it had signed deals for more than $500 million in new financing and would close 150 stores, cut jobs and revise its strategy in merchandising in an effort to turn around its loss-making operations. Investors, however, remain concerned that the retailer’s plan, announced in a strategic briefing, will do little to improve Bed Bath & Beyond’s business as shares fell 25%. The retailer also announced a plan to raise money by issuing new shares. The big box chain – once considered a so-called “category killer” in home and bath products – has seen its fortunes falter after trying to sell more of its own brand or private label products. The COVID-19 pandemic, the supply chain crisis and consumers leaving the markets due to high inflation also hit the chain’s sales. Sign up now for FREE unlimited access to Reuters.comSign up Bed Bath & Beyond forecast a bigger-than-expected 26% drop in same-store sales for the second quarter and said it would keep the buybuy Baby market, which it had put up for sale. Efforts to sell buybuy Baby had been encouraged by GameStop Corp ( GME.N ) Chairman Ryan Cohen, the company’s biggest investor until this month, when he sold his 9.8 percent stake, sending shares tumbling. vertically. Once known for offering 20% off coupons to many shoppers, Bed Bath & Beyond has revamped its merchandise in recent years to focus on private label products, including Our Table cookware. read more The chain is now abandoning that strategy, shedding three of its private-label brands and rebranding national brands with labels such as Calphalon, Ugg, Dyson and Cuisinart supporting that strategy, executives said on a conference call. Executives said Bed Bath & Beyond is cutting about 20 percent of its corporate and supply chain workforce and eliminating the CEO and Store Manager roles. The company employs approximately 32,000 workers. Top brass sought to reassure analysts that sellers were still supporting the company, a key indicator of its long-term financial prospects. Suppliers will ask for more money upfront or stop shipping goods if they believe retailers can no longer pay them. Signage is seen at a Bed Bath & Beyond store in Manhattan, New York, U.S., June 29, 2022. REUTERS/Andrew Kelly/File Photo “As we’ve managed our cash burn, we’ve seen changes in the suppliers we manage,” said Chief Financial Officer Gustavo Arnal, adding that the company is managing the situation “on a one-to-one basis.” First-quarter sales fell 25% and it lost $358 million, leading to the firing of CEO Mark Tritton in June. The company hired Sue Gove, an independent board director, to replace him on an interim basis. On Wednesday, Gove said the retailer “continues to see significant positive momentum” and intended to build on its “deep legacy as a retailer”. “While there is a lot of work ahead, our roadmap is clear and we are confident that the significant changes we announced today will have a positive impact on our performance,” he said on a conference call. The retailer also said it extended an existing loan and took out a new $375 million first-to-last loan and will launch a stock offering of up to 12 million shares. Arnal said 50 to 60 stores will close in a “first wave” heading into the balance of Bed Bath & Beyond’s fiscal year, which ends in February. The company has approximately 900 stores. “They’re running out of cash and they’re desperate to raise cash just to keep the business going,” said Jim Dixon, an equity sales trader at Mirabaud. To improve its finances, the retailer said it will cut SG&A expenses by $250 million this year compared with last year and curb capital spending. The company also estimates that comparable-store sales will fall 20% this year as it works through its transformation. “We are broadly satisfied that the measures announced today … will ease the pressure on the company, allowing it to continue trading,” said Neil Saunders, CEO of GlobalData. Sign up now for FREE unlimited access to Reuters.comSign up Reporting by Uday Sampath and Deborah Sophia and Bansari Kamdar in Bengaluru. Additional reporting by Siddharth Cavale, Jessica DiNapoli and Arriana Mclymore. Edited by Arun Koyyur and Jonathan Oatis Our Standards: The Thomson Reuters Trust Principles.
