Home goods giant Bed Bath & Beyond says it's running out of money and may need to file for bankruptcy protection — or worse. Its stores have seen fewer shoppers and declining sales as the retailer has struggled to find its footing in recent years through a series of poorly timed or otherwise lacklustre turnaround strategies. Now the retailer "has concluded that there is substantial doubt about the company's ability to continue as a going concern.”
Shares of the company plummeted by 17% in premarket trading after Bed Bath issued the updates in a pair of financial filings. Among its challenges, Bed Bath said it is having trouble getting enough merchandise to fill its shelves and is drawing fewer customers to its stores and website. The retailer also said that it wasn’t able to refinance a portion of its debt, less than a month after notifying investors it planned to raise new debt in order to pay off chunks of existing debt.
Why it matters
Bed Bath & Beyond has faced crisis after crisis in recent years: a rise and crash as a meme stock, a leadership shakeup, trouble with suppliers, a turnaround intended to improve upon a previous turnaround, store closures, job cuts, and the shocking news of its financial chief's death. Most notably, Bed Bath & Beyond missed out on the shopping boom that the pandemic brought to many home-goods sellers, as the company was in the middle of an overhaul that involved replacing big name brands with more private brands.