Reuters: Bed Bath & Beyond to Lay Off Another 1,300 Employees
Bed Bath & Beyond will reportedly lay off approximately 1,300 more employees at four locations in New Jersey, according to a Worker Adjustment and Retraining Notification (WARN) notice seen by Reuters. The layoffs will occur before a change to the state’s labor laws that would mandate companies with 100 or more employees to notify authorities 90 days in advance of plant closings or mass layoffs, rather than the current 60 days.
Bed Bath & Beyond has been working to avoid bankruptcy since the start of 2023 through a combination of downsizing and financial efforts. The retailer first warned of a potential Chapter 11 filing in early January after it reported a net loss of $385.8 million for Q3 2022, which was 40% larger than its loss in Q3 2021. The danger grew when it defaulted on its credit line with JPMorgan Chase & Co. later that month, but it managed to secure a lifeline in the form of a $1 billion loan.
However, many investors believe Bed Bath & Beyond is only treading water. Shares fell significantly in response to news of the loan, and efforts to find a buyer have yet to produce results. In the meantime, the retailer is continuing to cut costs through drastic measures including winding down its business in Canada and closing its 50 remaining Harmon stores in addition to 87 Bed Bath & Beyond locations and five BuyBuy Baby shops.
The retailer aimed to buoy its dropping share price with a reverse stock split in early March, but the news caused share prices to drop further. As of March 27, Bed Bath & Beyond was trading at just 79 cents per share, down more than 96% year-over-year.