On August 31, Bed Bath & Beyond (BBBY  ) announced that it will be closing "approximately 150 lower-producing" locations, cutting 20% of its workforce, and dropping a third of its brands in an effort to "drive growth and profitability, and improve its balance sheet and cash flows".

"We are embracing a straight-forward, back-to-basics philosophy that focuses on better serving our customers, driving growth, and delivering business returns," Sue Gove, Director & Interim Chief Executive Officer, is quoted in the announcement. "We are working swiftly and diligently to strengthen our liquidity and secure our path for the future."

In its announcement, the company reported net sales of around $1.45 billion, a 26% drop compared to the same period last year. Recently, one of Bed Bath & Beyond's largest shareholders, Ryan Cohen, announced that he had sold his 10% stake in the company, leading to a 40% drop in the stock.

Like many other retailers, Bed Bath & Beyond has been struggling to retain sales under inflation, and that lack of demand has led to excess inventory. The chain also tried and failed to overhaul its supply chain during the pandemic, leading to shortages and depressed sales, despite the uptick in online shopping in 2020.

"That led to further defection of customers from Bed Bath & Beyond and further pressure on their sales trends," one of Wedbush Securities' managing directors, Seth Basham, told NPR.

To try to win back some of those customers, the home goods chain will be beefing up its loyalty program and bringing back popular national brands. Three of Bed Bath & Beyond's Owned Brands will be dropped to make room for the former-favorite products.

The retail chain says it's also secured more than $500 million in additional financing from J.P. Morgan (JPM  ) and the investment firm Sixth Street Partners.

The Bed Bath & Beyond announcement also laid out changes to the company's leadership, including adding two new brand president roles and removing the chief operating officer and chief stores officer positions.

Just days after the store closure announcement, Bed Bath & Beyond's executive vice president and chief financial officer, Gustavo Arnal, tragically died in an incident that has since been ruled a suicide.

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