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Bed bath and beyond, issued a new warning.

 

Bed bath and beyond, issued a new warning.

Bed Bath & Beyond, the US home goods chain, has warned that there is substantial doubt about its ability to continue as a going concern, raising the prospect of one of the country’s largest retail bankruptcies since the start of the pandemic.

The company, which has almost 1,000 stores, told investors that it was considering strategic alternatives including a debt restructuring, raising new debt or equity, selling assets and «obtaining relief under the US bankruptcy code».
It cited «reduced inventory availability» and lower customer traffic among the reasons why it expects to report a sharp year-on-year drop in sales for the quarter to November 26, from $1.88bn to about $1.26bn.
Impairment charges of about $100mn would also increase its net loss for the period from $276mn a year ago to about $386mn, it said.
The group, which had more than $1.7bn in long-term debt at the end of August, secured a $375mn loan from Sixth Street Partners in August.
Bed Bath & Beyond unsecured notes maturing next year were already trading at less than 25 cents on the dollar this week.
Most US retailers entered the holiday season with healthy levels of inventory, in contrast to the first two years of the pandemic, which were complicated by supply chain disruptions and sharp changes in consumers’ buying patterns. But Bed Bath & Beyond struggled more than most to stock the items its customers wanted, with vendors growing nervous about its ability to pay its bills.

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Comments

  1. Tim6 January 2023 at 16:10

    I think they just need to close and sell half of their stores and go down to around 500. This would probably help them survive.

    ReplyDelete
    Replies
    1. Adam6 January 2023 at 18:59

      Their shares fell to their lowest level in 30 years so the end is approaching quickly unless some drastic measures are taken. Just like you said, reducing their store number would alleviate some of the pressure even if lots of people would lose their jobs.

      Delete
  2. Gracie6 January 2023 at 17:00

    It's sad to see this well known retailer go down like this. And I do think it will go bankrupt. I don't see it making a comeback.

    ReplyDelete
    Replies
    1. Manuel6 January 2023 at 17:23

      Bed Bath & Beyond is going bankrupt unless someone buys it or offers significant financial aid. Too bad so many people will lose their jobs as well.

      Delete

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