According to The Street, Beyond Inc., formerly known as Overstock, has been making bold business moves since acquiring Bed Bath & Beyond for $21.5 million and transforming the brand into a fully online retailer in June of last year. Prior to its acquisition, Bed Bath & Beyond filed for Chapter 11 bankruptcy in April 2023, closing all of its stores due to a staggering $1.8 billion in long-term debt.
This year, Beyond Inc. has already made two significant investments to revive Bed Bath & Beyond as a brick-and-mortar presence.
Partnerships with The Container Store and Kirkland’s
On October 15, Beyond Inc. signed a major agreement with The Container Store (TCS), investing $40 million to showcase and sell Bed Bath & Beyond (BBBY) products across 102 locations. The deal involved a preferred equity transaction, giving Beyond Inc. a foothold in its former rival’s stores.
Following that, Beyond Inc. announced a strategic partnership with Kirkland’s (KIRK) to open five small-format Bed Bath & Beyond stores. In this collaboration, Kirkland’s will serve as the exclusive operator and licensee, marking a fresh approach for Bed Bath & Beyond’s retail presence.
Mass Layoffs: A Growing Trend in Corporate America
In response to financial struggles, many corporations are resorting to mass layoffs to cut costs. This year alone, several prominent companies announced significant reductions in their workforces: Intel (INTC) downsized by over 15%, Tesla (TSLA) cut 10% of its staff in April, and Paramount Global (PARA) enacted two rounds of layoffs, totaling a 15% workforce reduction.
Now, Beyond Inc. is following suit in reducing its labor force to mitigate costs.
Beyond Inc. Announces Major Workforce Reduction
On Tuesday, Beyond Inc. filed an 8-K report with the U.S. Securities and Exchange Commission, declaring plans to lay off 20% of its workforce in the fourth quarter of 2024. With this reduction, the company aims to establish a more sustainable cost structure that supports its affinity and data monetization model with a heavy focus on technology. This layoff is projected to reduce Beyond Inc.’s annual costs by around $20 million.
Also read: Citizens Bank Shuts Down 15 Branches in 6 States, Customers Forced to Move Their Money
Among those affected, Chief Production Officer Calisha Robinson was terminated, despite her recent hiring in March. Robinson had been responsible for overseeing Beyond Inc.’s transition and guiding its Bed Bath & Beyond acquisition. Her departure raises questions about the impact of leadership changes on the company’s strategic direction.
Beyond Inc. Sells Headquarters Amid Financial Struggles
On September 16, Beyond Inc. sold its corporate headquarters to the Salt Lake County government for $55 million. Despite these recent investments, the company’s finances continue to face challenges, evident in its recent cost-cutting measures.
Stock Performance and Market Impact
As of the market open on Thursday, Beyond Inc.’s stock experienced a significant drop of nearly 31%, continuing a downtrend that highlights investor concerns.
- Last $2,710 check in November for eligible 62-year-olds on Social Security retirement benefit payments - November 24, 2024
- In which states will SNAP benefits be paid before Black Friday? Payment days and amount - November 24, 2024
- Discover Valuable Silver Coins That Could Be Worth a Fortune – Find Out Now! - November 24, 2024
