Warns the loss of bed bath and beyond

Warns the loss of bed bath and beyond


Bed Bath & Beyond defaulted on the loan and doesn’t have enough cash to pay off the debt, the retailer said Thursday.

The furniture chain has said it is considering options after the default in its securities filings — including restructuring its debt in bankruptcy court.

It’s not the first time the filing has hinted at a bed bath and beyond. The company warned earlier this month It was a “big doubt”. It can stay in business. The retailer soon It showed a 33 percent decrease in sales. And in the year A widening loss for the fiscal third quarter ended Nov. 26 compared with a year earlier.

Chief executive Sue Gove blamed the poor performance on inventory constraints and reduced credit limits, which led to a shortage of goods on store shelves. Wall Street analysts and consumer behavior experts told CBS MoneyWatch that Bed Bath & Beyond self-destructed years ago by failing to capitalize on e-commerce, buying too much of its own stock and trying to sell private label products that consumers didn’t buy. i don’t like.

“The default announcement shows that the company is living on borrowed time and money,” GlobalData managing director Neil Saunders said in a research note Thursday. “Short of a partial sale of the business or a miracle in a loan from an investor, the likely result is bankruptcy.”

A spokesperson for Bed Bath & Beyond told CBS MoneyWatch that the company has “a team with proven experience helping companies navigate difficult situations successfully and become stronger.”

Still, turning around at Bed Bath & Beyond is expected to be difficult due to increased competition from discount providers. The struggle comes as the economy weakens and consumers tighten their wallets.

Bed Bath & Beyond experienced a wave of investor interest last year, as Ryan Cohen, the billionaire founder of the online pet food company Chewy, bought more than 7 million shares in the company. He He sold those shares last August He earned $178 million and sparked a massive sell-off among investors in Mem stock. The company made headlines again in September when its former chief financial officer He died unexpectedly After jumping from a skyscraper in New York.

The New Jersey retailer is trying to turn things around and cut costs after previous management’s strategy exacerbated declining sales. The company announced in August that it would close about 150 stores and cut its workforce by 20 percent. In addition, more than 500 million dollars have been lined up for new financing.

Bed Bath & Beyond’s stock price fell 22 percent to $2.52 on Thursday.


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