Bed Bath & Beyond (NASDAQ:BBBY) said on Wednesday that it has secured $500 million in new financing, and that it is laying off staff and closing stores as it seeks to fix its struggling business.
The home goods retailer announced the moves in a news release ahead of an investor update early Wednesday. It is expected to share more details about its turnaround strategy. It said it has identified and commenced the closure of about 150 stores.
The company said that it has gotten a $375 million loan through Sixth Street Partners, a lender that has provided financing to other retailers including J.C. Penney (NYSE:JCP) and Designer Brands. It has expanded $1.13 billion asset-backed revolving credit facility, too.
Bed Bath’s finances and its business are in a challenging spot. As the retailer has spent money on store remodels, new private brands and stock buybacks, its sales have slowed and its excess inventory racked up. Its net losses widened to $357.7 million in the most recent quarter. As of the end of May, it had about $100 million cash compared with $1.1 billion a year earlier.
Bed Bath’s shares have been on a meme stock-fueled rollercoaster ride for months, rocketing up to $30.06 and falling to a low of $4.38 in the past year. As of Tuesday’s close, shares are down about 17% year to date.
Shares closed Tuesday at $12.11, down about 9%.
BBBY shares opened Wednesday off $2.72, or 22.5%, to $9.39.
