Mattress Bathtub & Past is closing 150 extra shops — only a week after the struggling retailer introduced the closure of 87 locations.
The corporate’s brick-and-mortar footprint has already shrunk dramatically, a regulatory filing confirmed late Monday, and the brand new closings imply it can have shuttered 400 shops previously 12 months — virtually half the 950 or so stores it had open in February 2022.
That features final week’s announcement that it was additionally closing all 49 remaining Harmon Face Worth shops, which bought cosmetics; plus 5 buybuy Child places. A listing of the brand new retailer closures wasn’t instantly obtainable.
A turnaround doesn’t look imminent: The embattled house items chain forecasts first quarter gross sales to be down by 30% to 40% with “sequential, quarterly gross sales enchancment thereafter” the submitting mentioned.
The corporate additionally mentioned Monday it was planning to boost some $1 billion via an providing of most well-liked inventory and warrants in a last-ditch effort to stave off chapter. If it could possibly’t full the complicated transaction, it could “doubtless file for chapter safety.” It additionally appointed Holly Etlin, a chapter professional, as interim chief monetary officer.
The chain has mentioned in current weeks that it had defaulted on a loan and may not be able to remain in business, elevating issues about its future. Mattress Bathtub & Past held talks in current days with an funding agency to underwrite a good portion of the proposed providing, according to Reuters.
Mattress Bathtub and Past has been a part of the meme inventory phenomenon, with shares skyrocketing as a lot as 400% final 12 months when activist investor and GameStop chairman Ryan Cohen took a stake and sought adjustments.
Shares of the retailer, which closed up 92% at $5.86 in a rollercoaster session Monday, have been down 40% in in pre-market buying and selling Tuesday.
Based in 1971, Mattress Bathtub & Past grew to become a staple for inexpensive house decor, kitchenware and faculty dorm room furnishings. It’s additionally identified for its ubiquitous 20% off blue coupons, and cavernous shops with merchandise stacked excessive to the ceilings.
However the firm struggled to make the transition to on-line buying and fend off bigger chains corresponding to Walmart and Goal
(TGT). Many patrons switched to these opponents because the novelty of Mattress Bathtub & Past’s coupons pale.
The corporate was additionally hit laborious throughout the pandemic, closing shops briefly throughout 2020 whereas rivals remained open. The corporate misplaced 17% of its gross sales in 2020 and 14% in 2021.
– Reuters contributed to this report