Bed Bath & Beyond (BBBY) - Get Report said Monday that it will temporarily close most of its stores stores in the U.S. and Canada, except for its BuyBuyBaby and Harmon Face Values stores, until April 3, in an effort to reduce the spread of the coronavirus.
The moves would close all but about 175 of the Union, New Jersey-based company's roughly 1,500 stores. Shares of the specialty retailer were rising 4% to $5.20.
The company said it will provide all associates affected by the store closures with applicable pay and benefits for this period.
Mark Tritton, president and CEO, said in a statement that "responding to consumer demand, we will continue to make available essential infant, personal and health care products to customers who need items urgently, in our stand-alone BuyBuyBaby and Harmon stores."
"Meanwhile, we are improving our ability to deliver other essential items to our loyal customers' homes during this time, by enhancing our e-commerce capabilities and regional distribution network," Tritton said.
Tritton said the company was managing its expenses, working capital, capital expenditures and balance sheet during the period of business interruption and uncertainty.
Bed Bath & Beyond has about $1.4 billion in cash and investments, he said, and access to an additional $250 million through a revolving credit agreement, as well as access to other uncommitted lines of credit.
"We are financially stable and will continue to be responsive to our customers' needs as this situation continues to evolve," Tritton said.
The latest step follows Bed Bath & Beyond's announcement last week, when the company said it would temporarily close more than 50% of its stores across all its banners within the U.S. and Canada.