The retailer said it secured a commitment of roughly $240 million in financing from Sixth Street Specialty Lending, Inc. There are 360 Bed Bath & Beyond stores and 120 Buy Buy Baby stores left in the company's assets, according to USA Today. How many Bed Bath & Beyond stores are left? Now, shoppers have had to tighten their purse strings due to inflation. Penney filed for Chapter 11 bankruptcy.īut in 2022, a respite came as shoppers spent their government stimulus money and savings. In the depths of the pandemic, a number of other retailers like Neiman Marcus and J.C. 25.īed Bath & Beyond joins a growing list of retailers that have filed for bankruptcy so far this year including party supplies chain Party City and David's Bridal. In late March, it noted that preliminary results showed anywhere from a 40% to 50% decline in sales at stores opened at least a year for the quarter ended Feb. Its financial performance has also deteriorated. In late January, it noted in a government filing it was in default of its loans and didn't have the funds to repay what it owes.Īs speculation of impending bankruptcy increased, the company's shares continued to tumble. 5 it was considering filing for bankruptcy and there was "substantial doubt" it could stay in business. There have also been rolling layoffs at social media company Twitter since entrepreneur Elon Musk acquired it in October.More: Bed Bath & Beyond files for bankruptcy protection, joining a growing list of major retailers Why is Bed Bath & Beyond closing?īed Bath & Beyond warned on Jan. Meta, the parent company of Facebook and Instagram, announced 11,000 job cuts in November 2022. The tech industry is also struggling with the current economic climate. The beauty industry is not the only sector affected by rising inflation costs. However, after being fully acquired by its lenders by the end of 2022, Revlon is now on the path to potentially exit bankruptcy by April this year. The make-up and skin care company cited increasing competition from agile D2C competitors and supply chains issues among its reasons. Heritage brand Revlon also filed for bankruptcy last year. The news came hot on the heels of a shock announcement that Morphe had shut all of its US stores with immediate effect. The parent company of Morphe, Morphe 2, Jaclyn Cosmetics and Bad Habit, filed voluntary proceedings and has accepted an acquisition deal. Meanwhile, beauty incubator Forma Brands filed for Chapter 11 bankruptcy last week. It is rumoured Amazon will cut jobs in the US, Canada and Costa Rica today (19 January) as part of this plan. Plus, the workforce in its PXT organisations, which handles human resources and other functions. The cuts would include roles in its bricks-and-mortar stores Amazon Fresh and Go. The e-commerce giant said it would be cutting more than 18,000 jobs, with employees affected expected to be told from 18 January onwards. Why are so many retail giants struggling?īed Bath & Beyond is not the only established retail business that has expressed concerns over its ability to continue.Īmazon also announced a second wave of layoffs this month due to “economic uncertainty.” These changes followed the death of CFO Gustavo Arnal, who fell from a Manhattan skyscraper in September. The promotion of Scott Lindblom to Chief Technology and Digital Officer was announced shortly after. Sue Gove was appointed President and CEO in October and Bart Sichel joined as EVP, Chief Marketing and Customer Officer in November. The big-box chain has also undergone an extensive leadership shuffle to facilitate these changes. In August 2022, company executives revealed plans to cut 20% of its corporate and supply chain workforce, as well as close stores and overhaul its merchandising strategy. Shares in the big-box retailer have also shot up around 20% as investors speculated it could be a potential acquisition target.īed Bath & Beyond has been trying to turn around its financial situation for some time. "As our strategic direction changes and we streamline our operations, it is necessary to right-size our organisation to ensure we are equipped for the future," the company said. The magnitude of the new layoffs has not been revealed yet. This includes overhead expenses and staff. The company has reported a third-quarter loss of US$393m and started cost reductions of around $80m-$100m across its corporate business. This news comes less than two weeks after the US retailer warned about filing for bankruptcy due to its worsening financial situation. Bed Bath & Beyond has started cost reductions across its corporate business (Image: WikiMedia Commons)Bed Bath & Beyond is laying off more staff in a bid to trim costs and turnaround the business.
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