Another well-known retail chain is struggling financially and many people will be affected, as home decor retailer Bed Bath & Beyond has just announced some shocking news. According to recent reports, Bed Bath & Beyond has just revealed plans to close 150 stores across the country and lay off a significant portion of its workforce.
Despite recently securing over $500 million in financing, Bed Bath & Beyond has made a drastic decision to keep the company afloat. completely bankrupt. @CNN reports, the company has just confirmed plans to close 150 stores, eliminate some in-house homeware brands, and lay off about 20% of its current workforce. According to financial experts, Bed Bath & Beyond has been in decline for several years, unable to compete with more successful companies like Amazon and Target.
At the height of its popularity, Bed Bath & Beyond was famous for its consistent coupons that proved to attract customers, however when shopping habits and product availability became apparent Elsewhere, the company has seen profits plummet. Target and Amazon offer cheaper and more popular options that have been popular with customers over the past decade. Following the news of the layoffs and store closures, the company’s stock fell 20%.
Additionally, insiders say that the company’s announcement is part of a “strategic update,” after a major investor eliminated almost all of his stake in the company. There are also reports that Bed Bath & Beyond suppliers have halted product shipments because of unpaid bills.
Things have taken a financial turn so dramatically that company representatives say that sales for stores open in a year or less fell 26% in the last quarter.
