Mattress Bathtub & Past has introduced that it’ll shut 150 shops—about 16% of its retail footprint—and lay off practically 1 / 4 of its workforce.
The house furnishings large stated the 150 shops it’s shuttering are “lower-performing” shops in a portfolio that totaled 955 previous to the announcement, together with 769 namesake shops, 135 Buybuy Child shops and 52 shops underneath its Harmon and Face Worth manufacturers.
The retailer additionally stated will probably be shedding about 20% of its company and provide chain workforce. The company cuts embrace the elimination of the chief working officer and chief shops officer positions.
Mattress Bathtub & Past reported a internet lack of $358M in its Q2 2022 earnings assertion, greater than seven instances the purple ink it skilled a 12 months in the past. In its most up-to-date replace, same-store gross sales plunged 26% for the three-month interval ended Aug. 27.
In accordance with a report in CNBC, the NJ-based retailer has misplaced a whole bunch of thousands and thousands of {dollars} in gross sales due to an absence of stock, main activist investor Ryan Cohen to promote his complete stake within the firm, whose inventory has misplaced greater than 17% of its worth for the reason that starting of the 12 months.
Mattress Bathtub & Past just isn’t counting on the cost-cutting strikes alone to enhance its backside line: the corporate additionally introduced that it has secured greater than $500M in new financing, together with a $375M mortgage from Sixth Road Companions and an growth of a $1.13B asset-backed revolving credit score facility.
“We’ve taken a radical take a look at our enterprise, and we’re saying quick actions aimed to extend buyer engagement, drive visitors and recapture market share,” stated Interim CEO Sue Grove, in an announcement saying the cutbacks.
“This contains altering our merchandising and stock technique, which will probably be rooted in nationwide manufacturers,” Grove stated.
Grove changed CEO Mark Tritton, who was ousted by the corporate’s board in June.
In accordance with CNBC, Mattress Bathtub & Past’s issues stemmed for greater than supply-chain disruptions. The retailer made an aggressive push into private-label merchandise, launching 9 unique manufacturers previously 12 months that it prominently displayed in its shops—a transfer that appeared to backfire as prospects couldn’t discover common title manufacturers.
Grove stated in her assertion that the corporate will discontinue three of its personal label manufacturers—Haven, Wild Sage and Studio 3B—and work nearer with nationwide manufacturers.
In January 2020, Mattress Bathtub & Past offered about half of its actual property portfolio—greater than 2M SF—to personal fairness agency Oak Road Actual Property Capital in a $250M sale-leaseback deal.
