Bed Bath & Beyond lays off hundreds of employees

Dive Brief:

Bed Bath & Beyond has laid off hundreds of employees, according to WARN notices filed in Florida and New Jersey.
The home retailer is closing a contact center operations site in Ocoee, Florida, and will lay off about 220 employees, effective Aug. 22, according to the notice. The retailer will also lay off 148 employees in Union, New Jersey, where its headquarters are, effective Aug. 22, according to the notice.
Bed Bath & Beyond previously announced it would cut 500 jobs, or 10% of its workforce, as part of a restructuring plan. It is unclear if the layoffs in Florida and New Jersey are part of that plan. Bed Bath & Beyond did not respond to Retail Dive's request for comment regarding layoffs.

Dive Insight:

Bed Bath & Beyond has been looking for ways to cut costs and shore up cash, all part of an effort to turn around its business.

The company in February laid out a $1 billion capital allocation strategy, which included spending $400 million on store remodels, supply chain improvements, and IT and digital projects, in addition to about $600 million on share repurchases and reduction of debt. Later that month, the home goods retailer announced it would cut about 500 jobs, or 10% of its workforce, as part of its restructuring plan.

Bed Bath & Beyond has also been working to streamline its business in recent months by selling off some non-core assets, including One Kings Lane and PersonalizationMall.com. Bed Bath & Beyond, however, filed a lawsuit in April in regards to the deal with PersonalizationMall.com not yet closing as expected.

When the PersonalizationMall.com deal was announced, CEO Mark Tritton said, "This transaction is another important step towards simplifying our portfolio and deepening our focus on our core Home, Baby and Beauty businesses." The company said it continues to work with outside advisers "to optimize the Company's portfolio of retail concepts and owned real estate."

Tritton, who arrived at Bed Bath & Beyond in November from Target, has moved swiftly in executing a turnaround. However, the COVID-19 pandemic has complicated those plans. The retailer was forced to temporarily shutter almost all of its stores, with the exception of its BuyBuy Baby and Harmon Face Values banners, though the retailer in May said it had reopened about 50% of its fleet. The company also cut executive salaries by 30%, reduced the board of directors' cash compensation by 30% and furloughed the "majority" of its store associates and corporate associates.

However, the retailer on Monday said it executed an $850 million three-year secured asset-based revolving credit facility to strengthen its liquidity. Bed Bath & Beyond said the ABL, which expires in June 2023, replaces its existing revolving credit facility allowing of borrowings of up to $250 million.