Bed Bath & Beyond is about to leave hundreds of workers unemployed as the company winds down its business in Canada.
The home goods retail store secured an initial order for creditor protection from the Ontario Superior Court of Justice under the Companies' Creditors Arrangement Act on Friday to allow for a timely wind-down of the business and liquidation of inventory, according to reports.
Court documents posted to Alvarez & Marsal Canada Inc.'s website say the company is insolvent and cannot restructure its operations without support from its American parent company, according to a report posted on City News.
The Canadian division of the company employs roughly 387 full-time employees and 1,038 part-time workers. It operates 54 Bed Bath & Beyond stores and 11 buybuy BABY stores, according to Reuters.
In an email to employees last month, CEO Sue Gove said the company is reducing its workforce “across our corporate, supply chain and store portfolio.”
The company had a net loss of $99.5 million for the nine-month period ending Nov. 26, 2022, the documents show. As of that date, Bed Bath & Beyond Canada's assets were valued at around $480.1 million while its total liabilities were worth around $429.7 million.
In August 2022, Bed Bath & Beyond said it will close about 150 of its “lower producing” stores and reduce its workforce by roughly 20% across its corporate and supply chain staff. The company posted the list of closing stores on its website.
https://www.hcamag.com/ca/specialization/recruitment/more-layoffs-announced-by-canadian-companies/436154