Bed Bath and Beyond is struggling to keep staff leaving before their store closes and has been forced to offer bonuses as it tries to avoid bankruptcy.
Like most of the United States, the retail industry in Colorado faces enormous challenges as chains continue to announce store closures. Major chains are closing their stores across the state as their customers move to online shopping.
Now they are facing another issue- staff quitting before the store closes.
Let's take a look at this developing story.
Bed Bath & Beyond stores in Colorado set to close
416 Bed Bath & Beyond-owned stores in the U.S. will close in 2023 due to financial issues. Seven of those stores listed to close are in Colorado.
- Vallejo: 5737 N. Elizabeth St.
- Thornton: 16531 Washington Street
- Loveland: 1605 Fall River Drive
- Northglenn: 241 W 104th Ave
- Dillon: 318 Dillon Ridge Way
- Grand Junction: 2464 US Highway 6 & 50
- Glenwood: Glenwood Meadows Shopping Center
No closing date for the stores was announced, which has led to uncertainty for staff who will be losing their jobs.
There has been little incentive for staff to continue to work at one of the stores set to close, as Bed Bath & Beyond is not offering severance payments. Therefore staff in many stores quit before their store's liquidation process was complete.
To try and combat this move, Bed Bath and Beyond are now offering bonuses for staff who stay with the stores until they officially close for good.
The bonuses are reputed to be:
- $500 for hourly workers
- $1,000 for supervisors
- $1,750 for assistant managers
- $2,250 for store managers
One Bed Bath and Beyond employee told Insider:
"I don't think it was out of the goodness of their heart. They were losing a lot of people."
However, it remains to be seen whether these new bonus payments will be enough to incentivize staff to stay or if they will continue to quit to find new jobs. On Thursday, in a filing to the U.S. Securities Exchange Commission Thursday, the business admitted challenges with retaining store personnel posed a material risk to its business.
They are also seeking to raise $300 million through an at-the-market share offering and have warned that if the full amount isn't raised, it “will likely force us to file for bankruptcy protection,”
For the latest list of all stores closing in Colorado, please check out this article. To keep up to date with the latest retail and business developments, make sure to follow me.
Should workers who lose their job due to store closures be given bonuses? Do you believe Bed Bath and Beyond made a wrong decision by not offering severance payments? Are you concerned about the number of retail stores closing in Colorado? Should the government provide financial support for struggling retail businesses or laid-off workers?
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