Skip to main content

Bed Bath and Beyond says it may not survive

 


Bed Bath & Beyond issued a grim message about its future Thursday, warning that a bankruptcy filing is a possible outcome for the company.

There is “substantial doubt about the company’s ability to continue” because of its worsening financial situation, the home goods chain said in a regulatory filing Thursday.

The company added that it is exploring strategic alternatives, including restructuring its debt, seeking additional cash, selling assets and filing for bankruptcy.

Bed Bath & Beyond’s (BBY) stock plunged more than 20% during early trading Thursday. It dipped below $2 a share, an all-time low.

“Bed Bath & Beyond is too far gone to be saved in its present form,” Neil Saunders, an analyst at GlobalData Retail, said in a note to clients Thursday. “All of this points to bankruptcy as being the most likely outcome.”

The company’s announcement marked the latest sign of trouble at one of the most popular retailers in America for decades. Founded in 1971, Bed Bath & Beyond became a staple for affordable home decor, kitchenware and college dorm room furniture. The retailer became known for its ubiquitous 20% off blue coupons and cavernous stores with merchandise stacked high to the ceilings. Brands coveted a spot on Bed Bath & Beyond shelves.

But the company struggled to make the transition to online shopping and fend off larger chains such as Walmart (WMT) and Target (TGT). Many shoppers switched to those competitors as the novelty of Bed Bath & Beyond’s coupons faded – consumers ca find plenty of cheaper alternatives on Amazon (AMZN) and other online sites.

The company also was hit hard during the pandemic, closing stores temporarily durin 2020 while rivals remained open. The company lost 17% of its sales in 2020 and 14% in 2021.

Bed Bath & Beyond has rotated through several different executives and turnaround strategies in recent years, including former Target executive Mark Tritton, who left the company last year after less than three years as CEO.

As of February 2022, Bed Bath & Beyond had 950 stores and 32,000 workers. The company also owns chidren’s retailer buybuy Baby.

The chain said in August that it will lay off approximately 20% of corporate employees, close around 150 stores and slash several of its in-house home goods’ brands.

Bed Bath & Beyond said Thursday that net sales for the company’s latest quarter, which included Black Friday, dropped 33% to $1.25 billion from the same time a year ago. Its losses grew 40% to $385 million from a year ago.

On Thursday, CEO Sue Grove said “we have a clear vision for the future of the company” and asked for patience.

“Transforming an organization of our size and scale requires time, and we anticipate that each coming quarter will build on our progress,” she said.

Comments

Post a Comment

Popular posts from this blog

Makiivka: Russia blames missile attack on soldiers' mobile phone use

  Russia has said a new year missile attack that killed at least 89 Russian soldiers happened because troops were using mobile phones, defying a ban. Turning on the phones and massive use of them allowed the enemy to locate its target, officials said. Ukraine says 400 soldiers were killed - and another 300 wounded - in the attack on a college for conscripts in Makiivka, in the occupied Donetsk area. It is the largest number of deaths Russia has acknowledged in the war. Russia said that at 00:01 Moscow time on New Year's Day, six rockets were fired from a US-made Himars rocket system at a vocational college, two of which were shot down. Moments earlier President Vladimir Putin had given his annual new year address on Russian TV. The deputy commander of the regiment, Lt Col Bachurin, was among those killed, the ministry of defence said in a statement on Wednesday. A commission was investigating the circumstances of the incident, the statement said. But it was "already obvious...
Post a Comment
Read more

Can Science Rule Out God?

 Introduction: The question of whether science can rule out the existence of God is a subject of ongoing debate. While science is a powerful tool for understanding the natural world, its scope is limited to empirical observations and testable hypotheses. Exploring the relationship between science and the concept of God requires careful consideration of the different realms they address. Scientific Method and the Natural World: The scientific method relies on empirical evidence, experimentation, and logical reasoning to understand the natural world. It seeks to explain phenomena through observable and measurable data. By its nature, science is restricted to investigating the physical universe and the laws that govern it. The Limitations of Science: God, as a concept, typically goes beyond the realm of empirical observation. Traditional religious beliefs often involve metaphysical claims that cannot be directly tested or measured through scientific methods. God is often described as ...
Post a Comment
Read more

The ways to promote your YouTube channel for more views

  There’s no better time than now to figure out how to promote your YouTube channel. Why “now,” though? For starters, YouTube is  the second most-visited site  on the web, and in a day and age where we’re spending up to  six hours per day  consuming video, the writing is on the wall. If you want to stand out on YouTube, you need to take advantage of as many promotional tactics as possible. Below we’ll go into detail on each of these tactics for promoting your YouTube channel and maximizing your viewership. Whether you’re just getting started or want to see your numbers tick further upward, these tips are all fair game. 5 Strategies to get more views on YouTube In addition to the 16 tips below, make sure you’re up on all things YouTube to maximize your efforts with these guides: How to create a YouTube channel for business  – Simplify setting up and perfecting your business channel. 11 Tips for writing YouTube descriptions  – Differentiate your videos a...
Post a Comment
Read more