Bed Bath & Beyond (NASDAQ:BBBY) stock is falling hard on Wednesday after releasing its Aug. 31 update for investors.
According to the update, Bed Bath & Beyond is taking measures to “meet the demand of its customers, drive growth and profitability, and improve its balance sheet and cash flows.” This has major changes coming to the retailer.
Let’s go over all of the details from that update below!
- Bed Bath & Beyond announced new financing commitments for up to $500 million.
- That includes its $1.13 billion asset-backed revolving credit facility.
- The company also mentioned a new $375 million “first-in-last-out” (FILO) facility.
- In addition, BBBY filed a stock offering with the U.S. Securities and Exchange Commission (SEC) this morning.
- Bed Bath & Beyond intends to reign in costs with a 20% reduction in workforce.
- That reduction includes employees in both its corporate and supply-chain settings.
- This should reduce its SG&A by about $250 million in fiscal 2022.
- To go along with that, the retail company intends to close 150 locations.
- The company says these locations are its lower-producing stores.
- Bed Bath & Beyond will also be adjusting its merchandise in stores to better align with customer demand.
- This has the company planning to discontinue three of its nine brands.
- These are its Haven, Wild Sage and Studio 3B brands.
- The remaining six brands will also be cut to 20% to better match demand.
- Bed Bath & Beyond also cut leadership roles and continues to search for a new CEO.
BBBY stock is down 23% as of Wednesday morning.
There’s more recent stock market news worth checking out below!
InvestorPlace is home to all of the latest stock news traders need to know about for Wednesday! Among that is what has shares of Chewy (NYSE:CHWY), Snap (NYSE:SNAP) and Crowdstrike (NASDAQ:CRWD) stock moving today. You can get all the details from the following links!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
