Bed Bath & Beyond May Soon Go Bankrupt — Retail Bum

Bed Bath & Beyond might soon be looking to file for bankruptcy as the company continues to deal with a worsening financial situation.

In a regulatory filing on Thursday, the company noted substantial doubt in its ability to continue operating its business. It is thus exploring alternatives such as seeking additional cash, debt restructuring, sales of assets, or filing for bankruptcy.

“Bed Bath & Beyond is too far gone to be saved in its present form,” said Neil Saunders, an analyst at GlobalData Retail, in a note to clients Thursday.

“All of this points to bankruptcy as being the most likely outcome.”

The company’s stock plunged by more than 20% in early trading Thursday, sinking below $2 per share for the first time.

The news marks the downfall of a major American retailer, which was once popular for its 20% off blue coupons and its cavernous in-store shopping experience. In recent years, however, the company has struggled to fend off competition from other big box retailers such as Target and Walmart and eCommerce players such as Amazon.

The challenges posed by the pandemic, in particular, have been detrimental to the state of its business. The company saw a 17% decline in sales in 2020 and a 14% dip in 2021.

As of February last year, the company operated 950 stores with 32,000 workers. In August, the company said it was laying off 20% of its corporate employees, shutting down 150 stores and several private label lines.

Originally published at https://retailbum.com on January 5, 2023.