Bed Bath & Beyond will close many stores as sales drop

The Mattress Tub & Past retailer on Operating Hill Highway in South Portland. It was unclear on Friday whether or not the 4 Maine retailers could be among the many 150 shops the corporate is closing nationwide. Carl D. Walsh/Employees Photographer

On the Mattress Tub & Past retailer in South Portland on Friday, there was little proof the dad or mum firm may be in bother.

A “rent now!” ยป banner held on the store window. A show invited clients to affix a brand new rewards program, and reasonably than last-ditch sale objects, Halloween decor was in place within the bustling checkout space.

The New Jersey-based house items retailer stated Wednesday it might shut 150 of its 955 shops and lay off 20% of its roughly 50,000 staff. The information got here as the corporate introduced a 26% drop in gross sales for the second quarter of 2022, in comparison with the identical quarter final yr.

A spokesperson for Mattress Tub & Past would not say if any of the 4 Maine shops are on the chopping block. Department officers in South Portland, Brunswick, Augusta and Bangor stated they weren’t licensed to discuss the closures or different modifications.

The corporate is scuffling with provide chain points and has misplaced gross sales resulting from a scarcity of stock. Throughout a presentation to shareholders on Wednesday, interim CEO Sue Gove introduced that the positions of chief working officer and retailer supervisor had been eradicated. Gove takes the submit of chief govt after the board voted in June to take away former CEO Mark Tritton, who led the corporate by dozens of retailer closures two years in the past. One retailer in Auburn closed throughout this spherical.

Enhancing and rebalancing stock will now be a prime precedence for Mattress Tub & Past, in line with the presentation. Different deliberate modifications embody bettering buyer engagement with loyalty packages that can be utilized throughout totally different shops and web sites.

Gove additionally stated Mattress Tub & Past was going “again to fundamentals”, with a give attention to nationally acknowledged manufacturers, after the corporate expanded into quite a few personal labels underneath Tritton’s management.

Chief Monetary Officer Gustavo Arnal stated the closures and employees reductions would save Mattress Tub & Past $250 million this yr.

“The choice to shut shops and downsize is a tough one,” he stated. “Nonetheless, these steps replicate shifts in technique and can enable us to focus our sources on areas of our enterprise that present the best return as we transfer in direction of sustainable, long-term and worthwhile development.”

Moreover, the corporate plans to boost funds by promoting as much as 12 million shares of widespread inventory, in line with an SEC submitting. Proceeds from the sale could be used for enterprise functions, together with paying off firm debt.

Mattress Tub and Past (Nasdaq: BBBY) inventory value fell from $12.11 a share in Tuesday’s market to almost $8.87 Wednesday morning when the announcement was made. Share costs closed at $8.63 on Friday afternoon.

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