Bed Bath & Beyond is sued by ousted CEO over unpaid severance
Clients store at a Mattress Bathtub & Past retailer on January 05, 2023 in Forest Park, Illinois.
Scott Olson | Getty Pictures
Mattress Bathtub & Past was sued on Friday by Mark Tritton, who was ousted final June as chief government of the troubled house items retailer, in a grievance accusing the corporate of failing to honor his $6,765,000 severance settlement.
Based on the grievance filed in a New York state courtroom in Manhattan, Tritton mentioned Mattress Bathtub & Past stopped making required bi-monthly funds in January, with its chief authorized officer citing the necessity to protect money as the only real motive.
In these discussions, Mattress Bathtub & Past “conceded Tritton was (and is) entitled” to severance funds, underneath his settlement dated 4 days after he was changed as chief government, the grievance mentioned.
Tritton additionally accused the corporate of “dangerous religion” for proposing a “buyout” of his severance at a reduction however provided that efficiency improves, even because it has resumed paying severance to some former workers.
Mattress Bathtub & Past didn’t instantly reply to requests for remark after enterprise hours. Tritton’s legal professionals didn’t instantly reply to related requests.
The Union, New Jersey-based firm is making an attempt to show round its enterprise after taking up an excessive amount of debt, being gradual to embrace on-line gross sales and alienating customers by de-emphasizing brand-name merchandise.
Mattress Bathtub & Past is closing a whole lot of shops, and on Thursday introduced plans to promote as much as $300 million of inventory.
It additionally estimated that gross sales in shops open at the very least one yr fell 40% to 50% within the quarter ending Feb. 25, and once more warned that chapter was doable if its turnaround failed.
Shares of Mattress Bathtub & Past closed down 16.6 cents at a report closing low of 42.7 cents on Friday.
The corporate is considered one of a number of “meme” shares, and its shares traded at $30 as lately as final August.