Bed Bath & Beyond begins new round of layoffs as threat of bankruptcy looms

Fresh off telling investors last week that it may consider a bankruptcy filing, Bed Bath & Beyond has kicked off a fresh round of layoffs.

The company said in a statement Tuesday that it would be “necessary to right-size” the company as it seeks to turn its business around.

“Unfortunately, this has necessitated making the difficult decision to say goodbye to some of our colleagues,” it said.  

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Jan. 10, 202301:23

CNBC was first to report the layoffs after it obtained a company memo that told employees that the cuts would be “across our corporate, supply chain and store portfolio.” It did not give an exact number of layoffs.

Bed Bath & Beyond is also eliminating the role of chief transformation officer, CNBC reported.

Last Thursday, Bed Bath & Beyond issued a “going concern” warning as it faced the prospect of a critical cash shortfall. It said it would seek to address the crunch it by exploring options, including a Chapter 11 bankruptcy filing.

Doing so would bookend a tumultuous post-pandemic period for the company that got it get caught up in the meme-stock frenzy, in which day traders and other amateur investors speculated on ostensibly troubled companies’ turning around. In the case of Bed Bath & Beyond, after they hit a pandemic low of about $4 in April 2020, company shares spiraled upward to as much as $35 in summer 2021.

Today, the company's shares are worth about $2.

Bed Bath & Beyond has also faced tragedy in the death of its chief financial officer, Gustavo Arnal, in September, which was ruled a suicide.


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