Bed Bath & Beyond Inc. said it might not be able to continue as a going concern, bringing another U.S. retail chain to the precipice of bankruptcy.
The Union, New Jersey-based company said it’s pursuing an array of strategic alternatives, including restructuring debt, selling assets or filing for bankruptcy-court protection, but “these measures may not be successful.”
Some suppliers had begun to halt shipments to the retailer in recent months, concerned about the company’s outlook. That aggravated the already tenuous financial situation the company faced. The retailer was for decades a mainstay of malls and shopping centers around the U.S.
Bed Bath & Beyond’s decline
Years of management missteps and a dysfunctional corporate culture plagued Bed Bath & Beyond. They left it ill-equipped to compete against Amazon.com Inc. and other online retail juggernauts.
In September, Bed Bath & Beyond’s chief financial officer died by suicide. Shortly before that, the world learned that Chewy founder and activist investor Ryan Cohen had sold his entire stake in the retailer. Cohen had driven Bed Bath & Beyond shares higher during the meme stock craze. Shares fell 40% in the wake of Cohen’s action. Unsurprisingly, Bed Bath & Beyond soon announced it had another dismal quarter.
The company continues to pursue steps to improve its cash position, it said in a Jan. 5 filing. However, its recurring losses and negative cash flow in the nine months ended Nov. 26 leave “substantial doubt” it can stay in business.
Furthermore, he retailer said it will report its third-quarter results on Jan. 10. That’s delayed compared with previous years. Executives will hold a conference call with analysts at 8:15am New York time that day.
Bed Bath & Beyond ranks No. 30 in the Digital Commerce 360 Top 1000.
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