Bed Bath & Beyond has lost customers and money after a series of unsuccessful or ill-timed attempts to turn the tide. It has also exhausted many financial lifelines. Above is the Bed Bath & Beyond store in Westbury, New York.
Bruce Bennett/Getty’s photo
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Bruce Bennett/Getty’s photo
Bed Bath & Beyond has lost customers and money after a series of unsuccessful or ill-timed attempts to turn the tide. It has also exhausted many financial lifelines. Above is the Bed Bath & Beyond store in Westbury, New York.
Bruce Bennett/Getty’s photo
Once-dominant home appliance retailer Bed Bath & Beyond has filed for bankruptcy protection after months of losing customers and money.
The company, which also owns the BuyBuy Baby chain, has struggled to regain its financial position after a year a series of turnaround efforts proven to be untimely or ineffective.
Since it first warned of bankruptcy in January, the company has exhausted many last-ditch efforts to shore up its finances, including store closures, job cuts and some relief from banks. and investors.
Outdoor shower bed previously quoted “lower customer traffic and reduced inventory availability” because it marks “substantial doubt about the company’s ability to continue as a going concern.” Preliminary report for the holiday quarter shows a 40% to 50% decrease in sales from a year earlier. Sales fell similarly in the previous quarter, down 32%.
Bed Bath & Beyond was once a dominant “category killer” that absorbed or surpassed many of its original rivals. As of 2018, the chain had more than 1,500 stores.
But it went bankrupt after a few years of roller coaster rides.
Its shares rose and fell like a stock meme following news that activist investor Ryan Cohen had invested in the company. He changed company management and then cashed his bet with a neat profit.
Then hundreds of stores closed, extensive layoffs and news of The shocking death of the company’s chief financial officer. Provider hesitant about sending more tools went to Bed Bath & Beyond, worried they wouldn’t get paid for it.
At the end of last summer, the company secured the financial resources to boost operations during the year-end shopping season. But lackluster sales have dampened enthusiasm among creditors in a tougher economic environment. Soon, Bed Bath & Beyond was struggling to pay what it owed its banks and suppliers.
In January, the chain defaulted on some of its loans, prompting those lenders to cut their credit. The company started the strike Last chance trading to stay afloat, sell more sharesask the landlord to reduce the rent and even have another company pays for its goods. In mid-April, its share price dropped to 24 cents.
Launched in the 1970s as a New Jersey-only boutique, Bed Bath & Beyond seemed unstoppable even through the Great Recession as it outlasted its main rival. , Linens ‘n Things, and subsequently acquired BuyBuy Baby, World Market, and online retailer One Kings Lane.
Shoppers flock to Bed Bath & Beyond for a treasure-hunting stroll through the floor-to-ceiling aisles lined with trash cans, kitchen utensils, bath caddies and bedding. Its never-expiring 20% blue coupon has become such an important cultural element that it is often sold on eBay.
