US furniture retailer Bed Bath & Beyond is being sued by its former chief executive for failing to pay severance packages.

(Reuters)

[Financial Channel/Comprehensive Report] American furniture retailer Bed Bath & Beyond was sued by former CEO Mark Tritton on Friday (31st) because the company failed to pay a severance package of US$6.765 million (NT$205 million).

Bed Bath & Beyond stopped paying severance payments in January, Mark Tritton said, according to a complaint filed in Manhattan, New York.

Due to the company's poor management, Mark Tritton was replaced by the company's board of directors in June last year.

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Bed Bath & Beyond's chief legal officer said the only reason for stopping severance payments was the need to preserve cash.

Bed Bath & Beyond was once one of the "meme stocks" sought after by retail investors. Last year, its stock price peaked at around US$30. It closed at US$0.43 on Friday, a drop of 28%. 

Bed Bath & Beyond had previously expected to close hundreds of stores, while planning to sell shares worth US$300 million (NT$9.1 billion) in an attempt to raise more funds, and warned that it may have to file for bankruptcy if it can no longer obtain funds.

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