A “Retailer Closing” banner on a Mattress Bathtub & Past retailer in Farmingdale, New York, on Friday, Jan. 6, 2023.
Johnny Milano | Bloomberg | Getty Photos
Mattress Bathtub & Past has begun its newest spherical of layoffs, because it fights to remain in enterprise, based on a memo despatched to staff Tuesday that was obtained by CNBC.
The house items retailer informed staff that it’s eliminating the chief transformation officer position, which is held by Anu Gupta, on the identical day it reported disappointing fiscal third-quarter outcomes.
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Within the electronic mail to staff, CEO Sue Gove mentioned the corporate is decreasing its workforce “throughout our company, provide chain and retailer portfolio.” She didn’t say what number of staff could be affected, however mentioned it’s mandatory to make sure Mattress Bathtub’s future.
“Whereas we’ve got taken a number of necessary preliminary steps in our turnaround plan with robust execution, our Q3 2022 outcomes sign that it’s going to take longer to translate actions into outcomes,” she wrote.
Gupta didn’t instantly reply to a request for remark. In a press release to CNBC, the corporate mentioned it’s “resetting parts of our basis.”
“As our strategic route modifications and we streamline our operations, it’s essential to right-size our group to make sure we’re outfitted for the longer term. Sadly, this has necessitated making the tough determination to say goodbye to a few of our colleagues,” the assertion mentioned.
The retailer has been working with advisors in latest months to stave off a chapter submitting whereas its monetary place worsened.
Initially, Mattress Bathtub was working with Berkeley Analysis Group, however opted to exchange the agency with AlixPartners just lately, mentioned folks accustomed to the matter, who declined to be named as a result of they weren’t licensed to debate the matter.
Mattress Bathtub mentioned it would not touch upon “particular relationships.” The corporate as a substitute referred to earlier feedback from Gove: “Now we have a group, internally and externally, with confirmed expertise serving to firms efficiently navigate advanced conditions and grow to be stronger. A number of paths are being explored and we’re figuring out our subsequent steps completely, and in a well timed method.”
AlixPartners declined to remark. A consultant for Berkeley Analysis Group did not instantly reply to a request for remark.
Mattress Bathtub & Past is approaching a possible chapter, as its gross sales decline and losses develop. The corporate’s retailer cabinets have gotten barer as suppliers demand upfront cost, cease transport items or change different cost phrases. Mattress Bathtub issued a “going concern” warning final week, saying it might run out of funds to cowl bills.
Mattress Bathtub had about 32,000 staff, as of Feb. 26, 2022, based on an organization submitting.
However since then, the corporate’s worker rely has shrunk. In August, it mentioned it will lower about 20% of its company and provide chain workforce and shut about 150 of its namesake shops.
Earlier Tuesday, Gove informed buyers that Mattress Bathtub has made progress in decreasing its working bills and can lower prices by an extra $80 million to $100 million, with a few of these financial savings coming from a decreased workforce.
Gove mentioned within the memo Tuesday that Mattress Bathtub will maintain a city corridor on Wednesday to debate its future.