Bed Bath & Beyond defaults on loans, inching closer to bankruptcy

Bed Bath & Beyond is unable to repay its loans and does not have enough money to pay back what it owes, the retailer said Thursday.

Household Goods Chain Reveals Securities Default filing He said he was looking at alternatives, including restructuring the debt in bankruptcy court.

This isn’t the first time Bed Bath & Beyond has threatened bankruptcy. The company warned earlier this month: There was a ‘considerable suspicion’ It can keep business going.modern retailers Reported a 33% drop in sales Also, the loss in the third quarter ended November 26 was wider compared to the same period last year.

CEO Sue Gove said inventory constraints and lower credit limits contributed to the poor performance, resulting in a shortage of products on store shelves. Wall Street analysts and consumer behavior experts told CBS MoneyWatch that Bed Bath & Beyond failed to pivot quickly enough to e-commerce years ago and bought back its shares. It said it self-sabotaged in an attempt to sell its own branded products that consumers didn’t buy. I do not like it.

Global Data managing director Neil Saunders said in a research note on Thursday that the default notice “underlines that the company lives on both borrowed time and money.” Bankruptcy is the most likely outcome, barring some miracles of sale or financing from investors.”

A spokesperson for Bed Bath & Beyond told CBS MoneyWatch that the company has “a team with a proven track record of helping businesses navigate tough times and come out stronger.”

Still, with increasing competition from discounters, Bed Bath & Beyond’s turnaround will be difficult. That struggle comes as the economy weakens and shoppers tighten their purse strings.

Bed Bath & Beyond saw a wave of investor popularity last year after billionaire Ryan Cohen, founder of online pet food company Chewy, bought more than 7 million shares.he sold those shares last August In a move that brought him $178 million and sparked a wide selloff among meme stock investors. died suddenly After jumping off a New York skyscraper.

The New Jersey-based retailer has been trying to turn things around and cut costs after the previous management’s strategy exacerbated sluggish sales, the company announced in August. Closed about 150 stores 20% fewer employees. It also raised more than $500 million in new funding.

Bed Bath & Beyond’s stock fell 22% on Thursday to $2.52 a share.