Things are not looking good for Bed, Bath & Beyond
While the home retailer struggles to stay afloat, tragedy has struck: its Chief Financial Officer (CFO) had reportedly just taken his own life.
According to the New York Post, a man jumped to his death from a new skyscraper known as the “Jenga Building” in Manhattan’s Tribeca neighborhood. He is Gustavo Arnal, 52, who allegedly jumped from the 18th floor of this building in September. 2, the newspaper reports citing police sources.
Bed, Bath & Beyond has yet to comment on this information. The company did not immediately respond to a request from TheStreet.
On the company’s website, Arnal has the title of “Executive Vice President, Chief Financial Officer.”
“Mr. Arnal joins the company in 2020 from Avon, a leading direct selling beauty company, where he helped lead a successful business turnaround effort,” his bio reads. “Prior to Avon, Mr. Arnal was CFO, International Divisions and Global Functions at Walgreens Boots Alliance.”
He also worked for Procter & Gamble as CFO India, Middle East and Africa, CFO Global Fabric and Home Care and CFO Global Personal Beauty.
Arnal sold shares on August 16
On August 16, Arnal sold 42,513 Bed, Bath & Beyond shares for $1.42 million, according to a filing with the US Securities and Exchange Commission (SEC). On August 17, he sold an additional 12,500 shares for $255,396. In total, he raised $1.67 million for these transactions.
On August 16, billionaire activist investor Ryan Cohen, co-founder of Chewy, Inc.
(also liquidated its entire 10% stake in Bed, Bath & Beyond, according to the SEC filing. CHWY)
The sad news comes as BBBY just announced a turnaround plan that disappointed investors.
The home goods retailer announced the potential launch of a market offering program for up to 12 million shares of common stock. Last quarter, Bed Bath & Beyond reported total debt of $3.27 billion and a debt-to-equity ratio of -23.47. This shows that the company’s liabilities exceed its assets.
According to Bloomberg, some suppliers have already stopped shipments to Bed Bath & Beyond after the company delayed some payments.
The company will close about 150 lower-producing Bed Bath & Beyond stores and lay off about 20 percent of its workforce. It hopes to cut selling, general and administrative expenses by $250 million for fiscal 2022, compared with an earlier forecast of $400 million.
It also secured $500 million in new debt financing. But the company decided to keep the Buybuy Baby business when investors hoped the chain was going to sell it.
“We are working quickly and diligently to strengthen our liquidity and secure our path for the future. We have thoroughly reviewed our business and today, we are announcing immediate actions aimed at increasing customer engagement, increasing traffic and regaining market share » , interim chief executive Sue Gove said at the time. “This includes changing our merchandise and inventory strategy, which will be based on National Brands. Additionally, we are focusing on driving digital and foot traffic, as well as optimizing our store fleet.”