New York. The American chain of home products stores Bed Bath & Beyond announced on Wednesday that it is going to close 150 stores and cut 20% of its workforce, among other measures to try to stabilize its financial situation.
The company’s shares, which have accumulated a sharp drop in the last year, sank more than 20% today at the opening of Wall Street, shortly after announcing this restructuring plan.
“We are working quickly and diligently to bolster our liquidity and secure our future. We have thoroughly reviewed our business and are today announcing immediate actions that seek to increase customer engagement, drive traffic and regain market share,” interim CEO Sue Gove said in a statement.
Bed Bath & Beyond plans to close some 150 underperforming stores, out of a total of 955, and rapidly reduce its expenses, cutting its workforce by about 20%, which in 2020 was about 55,000 employees.
Also, in order to secure its financial position, the company said it has secured more than $500 million in financing, including expanding a line of credit it already had, and is preparing to sell shares to raise cash. .
It also announced changes to its sales strategy, which in the most recent quarter plunged 26% from a year earlier.
In recent weeks, the chain has suffered strong fluctuations on the stock market after being identified as a target by small investors and speculators who coordinate on internet forums.
After a strong rise, its titles fell sharply once it became known that one of its most important shareholders – who had accumulated his participation this year and tried to force changes in the company – had gotten rid of his shares and opted to make cash taking advantage of the recent increases in its price.