Garden State Times

WASHINGTON, D.C. – U.S. Senators Cory Booker (D-NJ) and Elizabeth Warren (D-MA) sent a letter to Bed Bath & Beyond CEO Sue Gove following reports that the company attempted to avoid paying severance to its workers during the store closings leading up to its bankruptcy after spending more than $11 billion in stock buybacks since 2004.

Following years of declining profits, Bed Bath & Beyond declared bankruptcy in April of this year. Despite the more than $11 billion paid out in buybacks, the company is now attempting to avoid paying severance to its thousands of laid-off workers. In February 2022, Bed, Bath & Beyond reported spending $230 million on stock buybacks over the course of three months, just months before closing its stores.

“While your company has, under enormous public pressure, reversed course in New Jersey and agreed to recognize the newly expanded protections, employees in other states are still left without protection and have reported being stiffed on severance and other benefits they were owed,” wrote the lawmakers.

After revenues dropped 16% from 2019 to 2020, the company continued engaging in its aggressive stock buyback strategy. In their letter, the lawmakers request that Bed Bath & Beyond answer questions on its actions leading up to their bankruptcy declaration in addition to providing severance and benefits for its employees.

“Your company has a responsibility to your workers, and it’s clear that after years of putting profits for shareholders ahead of those responsibilities, and endangering the health of its business, Bed Bath & Beyond is still failing to do even the bare minimum to treat employees fairly in the bankruptcy process,” concluded the lawmakers.

The full text of the letter can be found here.

Original source can be found here.