Bed Bath Beyond CEO Mark Tritton sues retailer over severance

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Bed Bath Beyond CEO Mark Tritton sues retailer over severance

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 as the chief executive of the troubled home goods retailer in June.

The lawsuit states that Bed Bath Beyond stopped making required bi-monthly payments on Tritton's $6,765, 000 severance agreement in January.

According to a complaint filed in a New York state court in Manhattan, the company's chief legal officer cited the need to preserve cash.

Tritton accused the company of bad faith for proposing a buyout of his severance at a discount but only if performance improves, even though it has resumed paying severance to some former employees.

FOX Business reached out to Bed, Bath Beyond for comment.

The retailer is trying to turn around its business after taking too much debt.

Bed Bath Beyond is closing hundreds of stores and plans to sell up to $300 million of stock on Thursday.

If the turnaround fails, the company has warned that bankruptcy is possible.

It also estimated that sales in stores open at least one year fell 40% to 50% last quarter.

Bed Bath Beyond Shares was referred to as one of several meme stocks that traded as high as $30 last August.

On Friday, shares closed at a record low of 42.7 cents.