Bed Bath & Beyond begins new round of layoffs as threat of bankruptcy looms

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Fresh off telling investors last week that it may consider a bankruptcy filing, Bed Bath & Beyond has kicked off a fresh round of layoffs.

The company said in a statement Tuesday that it would be “necessary to right-size” the company as it seeks to turn its business around.

“Unfortunately, this has necessitated making the difficult decision to say goodbye to some of our colleagues,” it said.  

CNBC was first to report the layoffs after it obtained a company memo that told employees that the cuts would be “across our corporate, supply chain and store portfolio.” It did not give an exact number of layoffs.

Bed Bath & Beyond is also eliminating the role of chief transformation officer, CNBC reported.

Last Thursday, Bed Bath & Beyond issued a “going concern” warning as it faced the prospect of a critical cash shortfall. It said it would seek to address the crunch it by exploring options, including a Chapter 11 bankruptcy filing.

Doing so would bookend a tumultuous post-pandemic period for the company that got it get caught up in the meme-stock frenzy, in which day traders and other amateur investors speculated on ostensibly troubled companies’ turning around. In the case of Bed Bath & Beyond, after they hit a pandemic low of about $4 in April 2020, company shares spiraled upward to as much as $35 in summer 2021.

Today, the company’s shares are worth about $2.

Bed Bath & Beyond has also faced tragedy in the death of its chief financial officer, Gustavo Arnal, in September, which was ruled a suicide.

On Tuesday, the company reported quarterly results that showed same-store sales had fallen by 32%.

This post appeared first on NBC NEWS