- Bed Bath & Beyond is skipping out on some severance payments, Bloomberg reported Thursday.
- The struggling housewares giant previously paid up to 12 weeks’ wages following past store closures.
- More than 400 locations are slated to close as the company aims to avoid filing for bankruptcy.
Bed Bath & Beyond has decided not to offer severance payments to workers at stores affected by its planned closures this year, Bloomberg reported Thursday.
Citing internal documents and correspondence, as well as current and former employees with knowledge of the matter, Bloomberg indicated that the decision was announced in February and appears to be a move to conserve cash and avoid declaring bankruptcy.
Spokeswoman Julie Strider declined to comment to Bloomberg regarding severance but said in an emailed statement: “We continue to take disciplined steps to enhance our cost base, improve our financial position, and enable Bed Bath & Beyond to serve our customers well into the future.”
The company did not immediately respond to Insider’s request for comment.
Bed Bath & Beyond has previously paid as much as 12 weeks’ wages — worth several thousand dollars — in severance packages for employees as recently as last year, per Bloomberg.
More than 400 locations across three brands are slated to close as the struggling housewares giant attempts to salvage its business and return to profitability.
The company said this year it is targeting a final store count of 360, a mere shadow of its peak of 1,552 locations across its portfolio just five years ago.
Denying severance for store employees could complicate efforts to finish selling inventory, as some workers are quitting their jobs weeks before their locations actually close, Bloomberg reported.
Read the full story from Bloomberg.
Are you a Bed Bath & Beyond employee affected by these closures? Please get in touch with Dominick via email.