Bed Bath & Beyond, the beleaguered home goods retailer, said Wednesday it planned to close 150 stores, lay off employees and slash spending as it looked to stabilize its business by revamping its operations and raising extra cash.

The retailer is reducing the number of workers at its corporate offices and supply chain operations by 20%. It also said that it expects other layoffs related to the store closures, which are already underway and comprise about 15% of its overall store base.

In Sonoma County, there is a Bed Bath & Beyond store in Santa Rosa. In Solano County, the retailer operates stores in Vacaville and Vallejo. The company did not say which stores were on the chopping block.

To bolster its balance sheet, Bed Bath & Beyond has secured $500 million in new financing, $375 million of which comes from a loan by the investment firm Sixth Street. The retailer had about $100 million cash on hand at the end of May.

The funds will buy the company time for its turnaround strategy focused on increasing foot traffic and stocking its stores with more products that shoppers want to buy. It wants to recapture the market share it lost to rivals as shoppers pull back on spending. The company has about 1,000 stores.

“We are embracing a straightforward, back-to-basics philosophy that focuses on better serving our customers, driving growth and delivering business returns,” Sue Gove, Bed Bath & Beyond’s interim chief executive, said in a statement.

The retailer has been weighed down by double-digit declines in sales, negative cash flow, supply chain woes and a shift in consumers’ shopping habits away from spending on redecorating their homes at the high levels in earlier stages of the pandemic.

The chain’s financial travails have weighed on its relationships with suppliers. Gove said on a call with analysts that she has personally talked with the chain’s suppliers over the past few weeks to “reset” those relationships.

Bed Bath & Beyond also provided a grim financial update for its fiscal second quarter, which ended Aug. 27. It said its comparable sales fell 26% from the year before and it recorded negative cash flow. It now expects to spend $250 million on capital expenditures this year, it said, sharply down from a previous plan of $400 million. The company said it would report its full quarterly earnings on Sept. 29.

UPDATED: Please read and follow our commenting policy: