Bed Bath & Beyond has warned it is considering all options, including filing for bankruptcy protection.
Paul Sakuma/AP
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Paul Sakuma/AP
Bed Bath & Beyond has warned it is considering all options, including filing for bankruptcy protection.
Paul Sakuma/AP
Household goods giant Bed Bath & Beyond has said it is short on funds and may need to file for bankruptcy protection.
The store is seeing fewer shoppers and lower sales, as retailers are doing. had a hard time finding a foothold Through a series of ill-timed or lackluster turnaround strategies in recent years.
Now Bed Bath & Beyond has “concluded that there is considerable doubt as to whether the company can continue as a going concern,” the retailer said. said on thursdayThis means that Bed Bath & Beyond must consider all financial options including restructuring, sale of assets or bankruptcy.
“These measures may not be successful,” the company added. As soon as the market opened, its stock price fell more than 20% of his.
Bed Bath said it expects sales to fall 33% in the quarter that ended immediately after Black Friday compared to last year. Forecasts suggested he would see losses increase by almost 40% to $385.8 million.
The company plans to provide more details on January 10, when its financial report for investors was scheduled.
Bed Bath & Beyond has faced crisis after crisis in recent years. Rise and fall as memetic stocks, management changes, troubles with suppliers, upturns aimed at improving previous upturns, Store closures, staff reductionsand the shocking news Death of Treasury Secretary.
Most notably, Bed Bath & Beyond missed out on the shopping boom that the pandemic has brought to many home goods retailers. The company was in the midst of an overhaul that included replacing its well-known brands with more private brands.New brand turnaround strategy exacerbated the industry-wide supply chain crisis, Bed Bath shelves are missing top products like KitchenAid mixers. The company’s website also lagged behind its peers.
Meanwhile, activist investor Ryan Cohen has made a name for himself with Chewie and GameStop. bought stock in the company Last year, he encouraged his followers on Reddit and YouTube to boost Bed Bath’s stock price. CEO and other leaders Banished — and, just as suddenly, Cohen sold all his shares.
With all of this, Bed Bath & Beyond is launching along the familiar timeline of the rudderless retailer: In September, the company announced 150 more store closures and staff reductions to one-fifth of corporate and logistical staff.supplier start hesitant to send more Headed to Bed Bath for fear of not getting paid.
At the end of the summer, the company secured funding to survive the holiday shopping season. Now, retailers are trying to refinance their debt in the face of declining enthusiasm from creditors.
