APRIL 23, 2023 — BANKRUPTCY!
Bed Bath & Beyond filed for Chapter 11 bankruptcy relief in the U.S. District Court in New Jersey.
"We have made the difficult decision to begin winding down our operations."
MARCH 27, 2023 — OVER 1,033 LAYOFFS IN NEW JERSEY
Bed Bath & Beyond is closing 43 stores, two warehouses, and one fulfillment center in New Jersey. The company is also laying off 377 employees at its Union, NJ, corporate headquarters, effective April 9, 2023, in addition to laying off hundreds of workers at the Port Reading and Secaucus locations.
In aggregate, approximately 1300 employees will be made redundant across the locations by mid-April according to WARN notices filed with the state.
“In addition to the layoffs at the core stores, 262 positions will be cut from a Harmon store in Totowa, which will be permanently shuttered alongside all Harmon Face Value locations. Bed Bath & Beyond elected to liquidate all Harmon discount health and beauty stores in late January.”
It appears that the layoffs may have been driven by an April 10, 2023 change in New Jersey employment rules that could have increased the costs of layoffs in the state.
JANUARY 5, 2023 — BANKRUPTCY WARNING RED FLAGS FLYING
From an SEC filing and press release…
Sue Gove, President & CEO of Bed Bath & Beyond said, "We have a clear vision for the future of the company. Today's announcement underscores the importance of having initiated a turnaround at the start of the third quarter and why we strengthened our leadership team to execute each step with precision. Our plan has two anchors: the first enables us to refocus merchandising and inventory, operate more efficiently, and grow our digital and omni-capabilities, and the second focuses on strengthening our financial position. Transforming an organization of our size and scale requires time, and we anticipate that each coming quarter will build on our progress."
Ms. Gove continued, "Despite more productive merchandise plans and improved execution, our financial performance was negatively impacted by inventory constraints as we partnered with our suppliers to navigate both micro- and macro- economic challenges. Reduced credit limits resulted in lower levels of in-stock presentation within the assortments that our customers expect. Consequently, we have already leveraged the liquidity gained from the holiday season to immediately pursue higher in-stock levels with support from our key vendors. We have seen trends improve when in-stock levels have increased."
"Strengthening our ability to serve our customers will continue to drive our decision-making. We are resetting foundational elements to create a stronger and more nimble infrastructure that aligns closely with customer demand and preference. We continue to manage our financial position amidst a changing landscape and work with expert advisors as we consider all paths and strategic alternatives to accomplish our short- and long-term goals. We look forward to providing an update on these fronts on our formal third quarter earnings call next week."
Ms. Gove concluded, "As always, our employees and partners are our top priorities. Our unwavering engagement with our supplier community will continue as we work together to realize our full potential. We are a team focused on the future and I am grateful for the dedication and hard work of those who are powering our path forward. We will continue to steer our business dynamically to ensure Bed Bath & Beyond, buybuy BABY and Harmon remain destinations of choice for customers well into the future."
While the Company continues to pursue actions and steps to improve its cash position and mitigate any potential liquidity shortfall, based on recurring losses and negative cash flow from operations for the nine months ended November 26, 2022, as well as current cash and liquidity projections, the Company has concluded that there is substantial doubt about the Company's ability to continue as a going concern.
The Company continues to consider all strategic alternatives including restructuring or refinancing its debt, seeking additional debt or equity capital, reducing or delaying the Company's business activities and strategic initiatives, or selling assets, other strategic transactions and/or other measures, including obtaining relief under the U.S. Bankruptcy Code. These measures may not be successful.
SEPTEMBER 4, 2022 — SAD NEWS. CFO COMMITS SUICIDE
“The chief financial officer of troubled Bed Bath & Beyond has been identified as the man who jumped to his death from the iconic new Tribeca skyscraper known as the Jenga Building. Gustavo Arnal, 52, who was also an executive vice president for the struggling home goods retailer, plunged from the 18th floor of 56 Leonard Street.”
Arnal had been facing a $1.2 billion stock lawsuit since late August over allegedly inflating the company’s share value.
A lesson to troubled employees, embarrassment and financial wounds, while painful, are not final or fatal. If you are experiencing suicidal ideation, please call 911 or the local suicide hotline.
AUGUST 31, 2022 — 20% LAYOFFS AND 150 STORE CLOSURES
The company announced that it will close down 150 namesake stores, as well as plans to hand out pink slips to a whopping 20% of its workforce, mostly in the supply chain and corporate sectors of the business.
The company will kill or cut back on its cheap private brand knockoffs and return quality brand merchandise like Calphalon, Cuisinarte, and OXO to its shelves. No indication whether it will reverse its “woke” cancellation of MyPillows.
AUGUST 18, 2022 — COMPANY HIRES DEBT AND BANKRUPTCY ADVISORS
Bed Bath & Beyond has hired the law firm of Kirkland & Ellis, with significant debt restructuring and bankruptcy expertise to advise the company on restructuring its overwhelming debt load.
JUNE 30, 2022 — WARNING TO EMPLOYEES, CEO REPLACEMENT
As the night follows the day, cost-cutting and personnel changes follow the appointment of a new CEO as they try to convince the Board and Wall Street of their ability to run the company.
“Bed Bath & Beyond is replacing CEO Mark Tritton in a leadership shakeup after the retailer struggled through another quarter of declining sales and posted a steeper loss.”
“The company said Wednesday that Sue Gove, an independent director on the board, will step in as interim CEO. The change comes after a multi-year push to revive Bed Bath’s brand, grow online sales and win back customers. Tritton, a Target veteran, had led the effort after joining in 2019.”
JANUARY 7, 2022 — 37 STORES CLOSING AS FIRST OF 200 STORE CLOSURE
Restructuring is continuing with the closure of 37 stores of the previous announcement of 200 closures. The 37 stores are scheduled for closure in February 2022, after liquidation sales.
Half of the remaining stores are being remodeled and de-cluttered.
SEPTEMBER 1, 2021 — NEW JERSEY WAREHOUSE CLOSURE WITH 124 LAYOFFS
Continuing with its restructuring, the company plans to close its Burlington, New Jersey warehouse and lay off 124 workers on October 29, 2021.
The warehouse closure is part of the realignment of the company’s distribution operations. Operations will be transferred to the company’s newly constructed 1-million-square-foot distribution center in Frackville, Pennsylvania as part of a $250 million effort to modernize its supply chain.
AUGUST 26, 2020 — CONTINUING RESTRUCTURING WITH ANOTHER 2,800 LAYOFFS
Continuing with its restructuring plan, the company has announced that it’s eliminating approximately 5% of its workforce or an estimated 2,800 jobs at its corporate headquarters and stores.
According to a company statement, “The realignment will further simplify the Company's operations, support investment in its strategic growth plans, and provide additional financial flexibility. The changes will help fund a number of growth initiatives to enhance the omni-always shopping experience in-store and online, building on the recent introduction of Buy-Online-Pickup-In-Store (BOPIS) and Curbside Pickup services, in addition to supporting plans to launch an array of new customer-inspired owned brands in 2021 and deliver an end-to-end transformation of the Company's supply chain.”
“In conjunction with the organizational realignment, the Company has implemented a significant workforce reduction of approximately 2,800 roles from across its corporate headquarters and retail banner stores, effective immediately. This action is designed to further reduce layers at the corporate level, significantly reposition field operations to better serve customers in a digital-first shopping environment, as well as realign technology, supply chain, and merchandising teams to support strategic growth initiatives. “
FEBRUARY 27, 2020 — 500 LAYOFFS COMPANY-WIDE
The company has announced, “We are announcing extensive changes today to right-size our organization as part of our efforts to reconstruct a modern, durable business model. We do not take this action lightly but, while difficult, these measured and purposeful steps are necessary. This will reset our cost structure, allowing us to re-invest where it matters most to our customers, to re-establish our authority in the Home space."
It appears that the company is reducing its headcount by an estimated 500 positions as part of its restructuring plan.
DECEMBER 17, 2019 — BB&B’S NEW CEO LAYS OFF 6 C-LEVEL EXECUTIVES, MORE LAYOFFS TO FOLLOW
The job search is over. Interim CEO Mary Winston has been replaced by former Target executive Mark Tritton who was hired in November, 2019.
Tritton’s first move was to clean house in his executive office and laid off six executives on his staff. including the chief merchandising officer, chief marketing officer, and chief digital office among others. According to a company spokesperson, Tritton was quoted as saying, “This is the first in a number of important steps we’re taking. Balancing our existing expertise with fresh perspectives from new, innovative leaders of change, will help us to better anticipate and support our customers in their life journeys and shopping needs.”
Look for additional personnel changes as the new CEO continues to bring trusted personnel on board and they, in turn, bring their trusted colleagues.
JULY 24, 2019 — BB&B ANNOUNCES A 7% REDUCTION IN FORCE
It appears the activist investors have forced the company to trim costs resulting in a 7% reduction in the company’s workforce which includes the President and Chief Operating Officer as well as vice presidents, directors, managers and professional staff.
Interim CEO and Board Member Mary Winston noted, “While decisions that impact our staff are difficult, today’s action is an important step in simplifying our corporate structure and ensuring our resources are aligned with the business we are managing today. We remain confident in the underlying business and our ability to leverage the strength of the Bed Bath & Beyond brand and our lasting connection with customers to deliver on our near-term priorities and transform the company.”
Driving the decision was a net loss of $371.1 million for the quarter ended June 1, 2019, and a 6.6% downturn in net sales.
Original post…
Union, New Jersey-based Bed Bath & Beyond Inc, a discounter of household retail merchandise, has announced that their CEO, Steven Temares, has resigned after three activist investors (Legion Partners Asset Management LLC, Macellum Advisors GP LLC and Ancora Advisors LLC) excoriated the company’s leadership, business model, and operations. The activists are demanding that the retailer adopt changes to its business model to cope with the increasing sales pressure of e-commerce as well as reduce costs.
From a transition statement…
“Patrick Gaston, Independent Chairman of the Bed Bath & Beyond Board, stated, ‘Bed Bath & Beyond has a significant opportunity to drive value creation by building on its great brands and strong customer affinity. As the Company continues its efforts to improve its financial performance and enhance its competitive position, the Board determined that now is the right time to identify the next generation of leadership. We are fortunate to have someone of Mary's caliber to serve as Interim CEO while the Board conducts a search for a permanent successor, and are confident in her ability to lead the Company forward during this transition period.’"
“Ms. Winston said, "This is an important time for Bed Bath & Beyond and we are committed to being the leading omnichannel retailer of choice for the home and heart-felt life events. Together with the Board, including the members of the Business Transformation and Strategy Review Committee, the leadership team and our more than 60,000 associates, I look forward to building an even stronger future for Bed Bath & Beyond. As we continue to review our business initiatives, we will be focused on driving continued margin improvement, enhancing the in-store and online experience, and accelerating our transformation to the benefit of our shareholders, customers and other stakeholders."
About Mary Winston …
“Ms. Winston is a seasoned executive with significant governance expertise across a broad range of industries, having served on large public company boards and audit committees for many years. She has a strong background in all aspects of finance and accounting, as well as experience in M&A, corporate strategy, cost restructuring programs, corporate governance/compliance, and investor relations/communications. Among other roles, she has served as Executive Vice President and Chief Financial Officer at Family Dollar Stores Inc., Senior Vice President and Chief Financial Officer at Giant Eagle, Inc., Executive Vice President and Chief Financial Officer at Scholastic Corporation, Vice President and Controller of Visteon Corporation and Vice President, Global Financial Operations at Pfizer Inc. in the Pharmaceuticals Group. She started her career as a CPA and auditor at Arthur Andersen & Co. Ms. Winston is a National Association of Corporate Directors (NACD) Board Governance Fellow. She currently serves as President at WinsCo Enterprises Inc., a financial and board governance consulting firm.”
As you can see Winston is all about finance and cost-cutting, leaving the real estate and merchandising decisions to others. Since she is not giving up her own company to join Bed Bath & Beyond, she is most likely the hired gun to execute major changes before a permanent CEO is named.
Activist investors, new board members, and a change in senior leadership almost always foretells a reduction in force to curtail costs and to signal to Wall Street that changes are afoot. Time for employees to be vigilant.
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere ... are you now wondering, Am I Next?