Bed Bath & Beyond announced the closure of 87 more shops, down from 1,020 in 2021 and 953 in 2022.
The announcement comes just days after the struggling home goods US retailer revealed that it had defaulted on its debt. In addition, the business intends to close all of its Harmon cosmetics outlets and five buybuy BABY stores.
More Bed Bath & Beyond Store Closures Coming
Bed Bath & Beyond plans to close more stores; the retailer, which is working with consultants to bring the business around, said that the closures are being done to improve productivity. The retailer stated that the move is being made to improve efficiency to turn around the struggling firm.
Approximately 150 lower-producing Bed Bath & Beyond banner locations will now be closed due to this retail fleet reduction; the locations of the impacted stores are not presently available.
Bed Bath & Beyond said that the company had defaulted on its loans in a filing with the Securities and Exchange Commission, which would require it to think about renegotiating its debt in bankruptcy court.
The company wants to strengthen its financial position. These measures are being put in place to cut costs, reduce capital expenditures, renegotiate rental agreements with landlords, and shrink the footprint of its stores.
On Jan 5, Bed Bath & Beyond warned that the company was examining its options, including declaring bankruptcy, because there was “serious doubt” that it could continue operating.
It announced a week later that sales for the third quarter of its fiscal year, which concluded on Nov 26, had decreased by 33% to $1.26 billion, and its loss had grown. In addition, a crucial measure of a company’s health, Sales-at-Stores Open, for at least a year decreased by 32%.
CEO Said Holiday Sales Were Not So Great
Sue Gove, recently named the company’s president and CEO, attributed the underwhelming holiday sales to inventory shortages and lowered credit limits.
This most recent announcement will affect stores in thirty states. With 11 shops closing, Florida will lose the most Bed Bath & Beyond locations, followed by California with 10. The majority of Harmon stores are located in New York and New Jersey.
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