It’s the type of story that makes the average person scratch their head.
On Friday, Mark Tritton sued Union-based Bed Bath & Beyond, with the former CEO accusing the company of failing to honor his $6,765,000 severance agreement.
We’ll admit it, we don’t know any of the details of his contract. But it is clear that Tritton was ousted last June as head of the troubled home goods retailer. And it is clear that the company is facing bankruptcy.
According to Reuters, Tritton said Bed Bath & Beyond stopped making required bi-monthly payments in January, with its chief legal officer citing the need to preserve cash as the sole reason. The news organization cited a complaint filed in a New York state court in Manhattan.
In those discussions, Bed Bath & Beyond “conceded Tritton was (and is) entitled” to severance payments, under his agreement dated four days after he was replaced as chief executive, the complaint said – according to Reuters.
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.
Bed Bath & Beyond, which previously has announced it will be closing hundreds of stores, is trading at pennies on the dollar and appears to still be facing the possibility of bankruptcy.