The former chief executive of Bed Bath & Beyond filed a lawsuit on Friday against the retailer accusing the company of failing to honor his severance agreement.
Mark Tritton was ousted last June as chief executive of the troubled home goods retailer.
The lawsuit says Bed Bath & Beyond stopped making required bi-monthly payments in January on Tritton’s $6,765,000 severance agreement.
According to the complaint filed in a New York state court in Manhattan, the company’s chief legal officer cited the need to preserve cash.
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Tritton also accused the company of “bad faith” for proposing a “buyout” of his severance at a discount but only if performance improves, even as it has resumed paying severance to some former employees.
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FOX Business has reached out to Bed, Bath & Beyond for comment.
The retailer is trying to turn around its business after taking on too much debt.
Bed Bath & Beyond is closing hundreds of stores and on Thursday, announced plans to sell up to $300 million of stock.
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The company has warned that bankruptcy was possible if its turnaround fails.
It also estimated that sales in stores open at least one year fell 40% to 50% last quarter.
Bed Bath & Beyond Shares have been referred to as one of several ‘meme’ stocks, traded as high as $30 last August.
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On Friday, shares closed at a record low of 42.7 cents.
Reuters contributed to this report.
Source: https://finance.yahoo.com/news/bed-bath-beyond-sued-former-073512959.html