Bed, Bath & Beyond to furlough the majority of its retail workforce to cut costs

By:
on Apr 3, 2020
Listen
  • 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.

Follow Invezz on Telegram, Twitter, and Google News for instant updates >

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.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

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

Copy link to section

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

Copy link to section

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.

Retail Stock Market