A Mattress Bathtub & Past retailer is seen on June 29, 2022 in Miami, Florida.
Joe Raedle | Getty Pictures Information | Getty Pictures
Mattress Bathtub & Past stated on Wednesday that it has secured $500 million in new financing, and that it’s shedding employees and shutting shops because it seeks to repair its struggling enterprise.
The house items retailer introduced the strikes in a information launch forward of an investor replace early Wednesday. It’s anticipated to share extra particulars about its turnaround technique.
It stated it has recognized and commenced the closure of about 150 shops.
The corporate stated that it has gotten a $375 million mortgage via Sixth Road Companions, a lender that has supplied financing to different retailers together with J.C. Penney and Designer Manufacturers. It has expanded $1.13 billion asset-backed revolving credit score facility, too.
Mattress Bathtub’s funds and its enterprise are in a difficult spot. Because the retailer has spent cash on retailer remodels, new non-public manufacturers and inventory buybacks, its gross sales have slowed and its extra stock racked up. Its web losses widened to $357.7 million in the latest quarter. As of the tip of Could, it had about $100 million money in contrast with $1.1 billion a yr earlier.
That precarious place has endangered relationship with suppliers that it counts on to inventory cabinets and warehouses with items — particularly throughout necessary seasons like back-to-college and the Christmas season.
The corporate can also be looking for money in different methods. On Wednesday, it stated in a submitting that it will promote an undisclosed quantity of shares The announcement triggered the retailer’s inventory to plummet in premarket buying and selling.
Mattress Bathtub’s shares have been on a meme stock-fueled rollercoaster experience for months, rocketing as much as $30.06 and falling to a low of $4.38 up to now yr. As of Tuesday’s shut, shares are down about 17% yr to this point. Shares closed Tuesday at $12.11, down about 9%.
Learn the corporate’s information launch right here.
This story is growing. Please test again for updates.
