Lawsuit Claims Bed Bath & Beyond Failed to Properly Handle Layoffs During Store Closures

A former Bed Bath & Beyond manager is reportedly suing the company over allegations that the retailer didn’t treat workers fairly during the layoff process that accompanied the closure of all Harmon locations, according to Top Class Actions. Plaintiff Michael Palmeri filed the lawsuit against both Harmon and Bed Bath & Beyond in New Jersey Federal court, where he alleges violations of both the federal Worker Adjustment and Retraining Notification (WARN) Act and the New Jersey WARN Act.

The lawsuit claims that Bed Bath & Beyond failed to pay employees wages, salary, commission, bonuses, benefits, accrued holiday pay and accrued vacation owed following the terminations, which amounts to willful misconduct. Additionally, the lawsuit states that employees did not get the required 60 days’ notice before being laid off.

Palmeri is seeking certification of the class action, plus 60 days of pay, retirement and health insurance contributions, a week of severance pay for each year of employment, damages, fees, costs and a jury trial.

Bed Bath & Beyond has closed hundreds of stores and laid off more than 1,300 employees in recent months as it seeks to stave off bankruptcy through a combination of cost-cutting and loans. Other recent developments include:


  • A $300 million at-the-market share offering program; and
  • A vendor consignment program with ReStore Capital in which ReStore Capital will purchase up to $120 million of pre-arranged merchandise from the retailer’s key suppliers to supplement inventory levels already sold at Bed Bath & Beyond and BuyBuy Baby.

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