The new turnaround plan for the business involves store closings, job reductions and a pullback from the private label strategy it has focused on in recent years.
The embattled home goods chain has also secured more than $500M in new financing to shore up its business ahead of the holiday selling season. The financing includes a $375M loan through Sixth Street Partners and the newly expanded $1.13bn asset-backed revolving credit facility. It also announced a plan to sell up to 12 million additional shares of its stock.
“We are embracing a straight-forward, back-to-basics philosophy that focuses on better serving our customers, driving growth, and delivering business returns,” stated Sue Gove, Director and Interim CEO. “We have taken a thorough look at our business, and today, we are announcing immediate actions aimed to increase customer engagement, drive traffic, and recapture market share.”
