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Bed Bath & Beyond (BBBY, $9.53) the flailing home-goods retailer unveiled its ambitious turnaround plan on Wednesday, a plan that includes closing 150 stores, cutting 20% of its staff, and backpedalling on its strategy of pushing private labels over national brands.
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The home-goods retailer said it has received commitments for a new $375 million “first-in-last-out” facility with Sixth Street Partners and around $130 million to expand an asset-based revolving credit facility, which is led by JPMorgan Chase. The company said the loan deal hasn’t closed yet but is expected to soon.
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The biggest strategy shift for Bed Bath & Beyond is its inventory mix: the company said it would immediately start prioritizing national brands over its private-label offerings, a move that would highlight "beloved brands" like Cuisinart and OXO. Individual stores will be tasked with overhauling their aisles and end caps to lead with national brands, the company said.
Why it matters
Bed Bath & Beyond’s woes are the culmination of a series of missteps by executives in recent years. Those problems are now exacerbated by slowing consumer demand for home goods. Former CEO Mark Tritton boosted the company’s private-label products while trimming its offering of well-known brand names. Customers missed the household names that had drawn them to Bed Bath & Beyond in the first place and the availability of the company’s private-label products was inconsistent during the pandemic.
