Bed Bath & Beyond Inc. said it’s close to securing financing and is putting in place a new business strategy to reduce costs as the troubled retailer tries to convince investors, vendors and customers that it has a credible survival plan.
The home-goods retailer said it has received commitments for a new $375 million “first-in-last-out” facility with Sixth Street Partners and an expanded $1.13 billion asset-backed revolving credit facility, which is being led by JPMorgan Chase. The company said the loan deal hasn’t closed yet but is expected to soon.
To boost falling sales and cut costs, Bed Bath & Beyond said Wednesday that it is cutting 20% of jobs across its corporate and supply-chain operations and closing about 150 lower-producing stores. The company said the efforts would reduce costs by about $250 million this fiscal year. Bed Bath & Beyond also said it would trim its capital expenditures.
