Bed Bath & Beyond is now in a fight for its life as the company grapples with low inventory issues going into Black Friday and unpaid invoices to suppliers. Over 40% of the retailer's inventory was out of stock in October, The Wall Street Journal reported on Thursday. It also reported that the company has yet to catch up on overdue payments to suppliers, with invoices dating as far back as January.
Bed Bath & Beyond's trouble dates back to at least November 2019, when former Target CMO Mark Tritton took over for interim CEO Mary Winston. Under Tritton, the company reduced its name-brand goods with its own private-label brands, which failed due to supply chain issues and lagging customer interest.
In September, Bed Bath & Beyond announced that it would close about 150 of its more than 700 stores and lay off about 20% of its employees as part of a restructuring deal to strengthen its financial condition.
Why it matters
According to the report, Bed Bath & Beyond suppliers still owe money and have paused shipments to the retailer until they get paid. Some national brands have said that they will not increase production for the company as they are still determining its financial position. Whether Bed Bath & Beyond successfully pulls off that rare corporate turnaround remains to be seen. Still, there's little doubt this holiday season will be a pivotal one for the company that many shoppers once considered a go-to destination for their shopping list.