Customers shop at the Bed Bath & Beyond store on January 5, 2023 in Forest Park, Illinois.
Scott Olson | beautiful pictures
Outdoor shower bed was sued on Friday by Mark Tritton, who was ousted last June as chief executive of the struggling home goods retailer, in a complaint alleging the company failed to honor his $6,765,000 severance agreement.
According to a complaint filed in New York state court in Manhattan, Tritton said Bed Bath & Beyond stopped making the required bimonthly payments in January, with the company’s chief legal officer citing the The only reason is the need to preserve cash.
During those discussions, Bed Bath & Beyond “recognized Tritton was (and) entitled” to receive severance payments, according to his agreement dated 4 days after he was replaced as chief executive. , the complaint said.
Tritton also accused the company of “good faith” for offering to “buy back” his severance contract at a discounted price, but only if performance improved, even if the company continued to pay. jobs for some former employees.
Bed Bath & Beyond did not immediately respond to after-hours requests for comment. Tritton’s attorney did not immediately respond to similar requests.
The Union, New Jersey-based company is trying to turn its business around after taking on too much debt, being slow to accept online sales and alienating consumers by not emphasizing high-quality products. trademark.
Bed Bath & Beyond is closing hundreds of stores and on Thursday announced plans to sell up to $300 million in stock.
It also estimated that sales at stores open for at least a year fell between 40% and 50% in the quarter ended February 25, and again warned that bankruptcy could happen if the process turns around. round failed.
Shares of Bed Bath & Beyond closed down 16.6 cents to a record low of 42.7 cents on Friday.
The company is one of several “meme” stocks, and its stock traded at $30 last August.
