Beyond To Layoff 20 Percent Of Workforce
Beyond Inc.’s planning for an annualized reduction of fixed costs in the amount of $20 million, and its doing that by cutting jobs.
The company said in a regulatory filing with the Securities and Exchange Commission that its board of directors on Oct. 20 approved a reduction in force (RIF) plan that would cut 20 percent of the firm’s workforce.
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“These actions were taken to strategically create a more variable, leverageable cost structure and create a more streamlined organization to align to its asset-light business that supports an affinity and data monetization model with a strong technology focus,” Beyond said in the filing.
One of the key executives to depart is Carlisha Robinson, the company’s former chief product officer. The filing said her last day was Tuesday.
On Monday, Beyond disclosed that it joined forces with specialty retailer Kirkland Inc. to revitalize the Bed Bath & Beyond brand with a neighborhood store strategy. Kirkland will become the home brand’s exclusive store operator and licensee for a new, smaller format no larger than 15,000 square feet. Beyond’s website will host Kirkland’s product assortment that includes furniture, rugs and textiles.
“An omnichannel approach to Bed Bath & Beyond is quintessential to its success,” Beyond’s executive CEO Marcus Lemonis said. “We understand that retail is both an art and a science and have vetted the management team and infrastructure of Kirkland’s Home as an ideal organization to help bring the iconic Bed Bath & Beyond brand back.”
As part of the terms of their partnership, Kirkland entered into a $17 million term loan credit agreement with Beyond, with $8.5 million comprised of a convertible not that will convert to Kirkland’s common stock at a price of $1.85 per share upon approval of Kirkland’s shareholders. A separate subscription agreement has Beyond purchasing an addition $8 million of Kirkland’s common stock. The parties also entered into a seven-year collaboration agreement. The agreement gives Beyond the ability to earn both a collaboration fee equal to 0.25 percent of Kirkland’s quarterly retail and e-commerce revenue, beginning in Kirkland’s first fiscal quarter of fiscal 2025 for the remaining term of the collaboration agreement, and an incentive fee equal to 1.5 percent of Kirkland’s incremental growth in e-commerce revenue. Beyond is also set to earn a store royalty fee equal to 3 percent of net store sales generated under the Bed Bath & Beyond banners during the term of the collaboration agreement. The rate increases to 5 percent of net store sales after the collaboration agreement has ended, provided the store locations are still in operation.