Bed, Bath & Beyond to furlough the majority of its retail workforce to cut costs
- Bed, Bath & Beyond to furlough the majority of its retail workforce due to COVID-19.
- The U.S retailer extends its shut down of non-essential retail stores until May 2nd.
- The Buy Buy Baby parent company is trading 75% down year to date in the stock market.
The global retail is one of the leading sectors that have been hit hard by the ongoing Coronavirus pandemic. In a recent development, Bed, Bath & Beyond (NASDAQ:BBBY) said on Thursday that it plans on placing the majority of its retail workforce and a few of corporate associates on furlough in order to cut costs and maintain the financial stature to ensure quick recovery as businesses resume after the health crisis.
In its announcement at the start of March, the American chain of retail stores had announced a temporary shutdown at all of its North American locations until April 3rd to protect its employees against the health hazard and contribute to the global effort in minimizing the fast spread of COVID-19. The company’s Harmon Face Values and Buy Buy Baby stores, however, remained open during this time as these businesses sell essential products.
Bed, Bath, & Beyond Extends Shutdown Until May 2nd
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As Coronavirus continues to take the U.S in its grip with the highest number of infected people (over 245,000) in the world, and more than 6,000 deaths, Bed, Bath & Beyond also declared that its non-essential retail stores will remain now remain closed until May 2nd.
During the shutdown, the retailer made applicable payments and offered benefits to its affected store associates. Its corporate associates that are now impacted by the extended shutdown, as per the company, will also receive pay and benefits until 18th April. Bed, Bath & Beyond will also continue to make complete payments for the associates’ healthcare premiums after 18th April for an indefinite period. Furloughed associates, the retailer added, can also check their eligibility for unemployment benefits during this period.
Bed, Bath & Beyond Performance In The Stock Market
Bed, Bath & Beyond’s statement fueled an around 2% increase in its stock in extended trading on Thursday. At £2.97 per share, however, the retailer is still over 75% down in the stock market in 2020 so far. Bed, Bath, & Beyond had earlier recorded a 52-week low on Thursday.
Its performance in 2019, however, was recorded largely upbeat with an annual gain of around 50%. With Coronavirus hitting the global retail sector, however, the company has lost all of its 2019 gains in the first quarter of the new year.
Bed, Bath, & Beyond had opened at £9.35 per share in January 2019 and closed the year significantly higher at around £14.07 per share in December. At the time of writing, the U.S retailer has a market cap of £367.66.