CNN Writes Obituary For Bed Bath & Beyond
In a grim warning, Bed Bath & Beyond (BBY) admitted in a regulatory filing there was “substantial doubt about the company’s ability to continue.” Its stock briefly plunged more than 20%, dipping below $2 a share — an all-time low.
Photo Insert: The company lost 17% of its sales in 2020 and 14% in 2021.
BBY is mulling raising cash and restructuring its debt, CNN revealed in its Business Nightcap newsletter, those are just the kind of measures that happen before filing for Chapter 11 protection.
“Bed Bath & Beyond is too far gone to be saved in its present form,” Neil Saunders, an analyst at GlobalData Retail, said in a note to clients. “All of this points to bankruptcy as being the most likely outcome.”
Since 1971, Bed Bath & Beyond has been a mecca for home goods. In the days before internet shopping — back when “minimalism” was a dirty word — it was the coolest spot in whatever suburban strip mall you got dragged to on Saturdays to run errands with your mom.
This place had everything. The store also won legions of fans with its generous 20% off coupons. That is, until the internet came, and made all that wandering in aisles obsolete. BBY didn’t move fast enough to adapt to the shift in the way we shop — lazily, on our couches, while watching TV.
The final straw may well be the pandemic. While some rivals remained open as “essential businesses” in the early days of 2020, Bed Bath & Beyond had to close its doors.
The company lost 17% of its sales in 2020 and 14% in 2021. In the latest quarter, which included Black Friday, sales dropped 33% to $1.25 billion from the same time a year ago.
On Thursday, CEO Sue Grove said “we have a clear vision for the future of the company” and asked for patience. “Transforming an organization of our size and scale requires time, and we anticipate that each coming quarter will build on our progress,” she said.