Mattress Tub & Past on Wednesday mentioned it's slicing 20% of its company and supply-chain workers and shutting 150 poor-performing shops because it seeks to chop prices amid a gross sales hunch. Shares of the corporate fell 9% in pre-market buying and selling.
The corporate additionally mentioned it has lined up $500 million in new financing, together with a $375 million mortgage. It additionally introduced plans to promote extra shares to the general public, with the proceeds directed towards paying down debt.
Mattress Tub & Past has been fighting declining gross sales and mounting losses as shoppers have shifted to opponents. Earlier this yr, GlobalData analyst Neil Saunders famous in a analysis report that the chain's shops are "fairly messy and lack primary merchandising self-discipline." Whereas its shares had attracted meme-stock merchants, the retailer misplaced one in all its massive traders earlier this month when Ryan Cohen, the billionaire founding father of on-line pet meals firm Chewy, bought his stake.
Mattress Tub & Past mentioned it should additionally streamline its retailer manufacturers by discontinuing three of its 9 labels: Haven, Wild Sage and Studio 3B.
The corporate has virtually 1,000 places, which signifies that it is going to be shuttering about 15% of its shops, based on FactSet.