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July 6 (UPI) — Two U.S. senators have publicly criticized Bed Bath & Beyond, accusing the now-bankrupt retail company of failing to provide severance pay to thousands of employees who lost their jobs.
In an open letter addressed to the CEO of Bed Bath & Beyond, Sue Grove, Senators Cory Booker of New Jersey and Elizabeth Warren of Massachusetts allege that the company’s executives received millions in bonuses before the bankruptcy while neglecting their employees’ well-being.
“We are writing today regarding recent reports that Bed Bath & Beyond failed to pay severance to thousands of workers that lost their jobs during the store closures leading up to the company’s bankruptcy, despite rewarding executives and shareholders with billions of dollars of stock buybacks over the last two decades,” stated the letter, which was co-signed by Booker and Warren.
“As a result, the workers who ran your business, staffed your retail stores, and fulfilled online orders are being forced to shoulder the brunt of the losses, while shareholders and some executives walk away unscathed. We are seeking further information about Bed Bath & efforts to evade severance pay for its workers, and its plans to treat workers fairly.”
Bed Bath & Beyond’s corporate headquarters is located in Booker’s home state of New Jersey.
The two senators also highlight Bed Bath & Beyond’s $1.8 billion worth of share buybacks since 2009, which resulted in the company accruing more debt while its core business suffered.
Booker and Warren have posed several inquiries to Grove, including the number of employees let go and the notice they were given. They are also demanding to review the store’s policy on matching 401k contributions.
In mid-April, the company announced the layoff of 1,295 employees ahead of new worker protection laws taking effect in New Jersey.
However, public pressure eventually compelled the management to provide severance to these employees based on seniority.
Founded in Springfield Township, New Jersey, in 1971, Bed Bath & Beyond succumbed to the rise of online shopping and filed for Chapter 11 bankruptcy in April.
During the bankruptcy proceedings, Bed Bath & Beyond’s intellectual property was purchased by online retailer Overstock for $21.5 million. Overstock, based in Utah, plans to relaunch the Bed Bath & Beyond brand online.
