Analysts report the strategic action may be the company’s last grasp at remaining in business.
Author’s Note
This article is based on corporate postings and accredited media reports. Linked information within this article is attributed to the following outlets: Finance.Yahoo.com, CNN.com, and BusinessInsider.com.
Introduction
I have written previously on the Bed Bath & Beyond chain for NewsBreak. See here for June 29th‘s “Bed Bath and Beyond Closings in 2022,” and here for August 20th’s “Update: Bed Bath & Beyond Closings in 2022.”
The former excerpted a piece from BusinessInsider.com that will give context for what follows: Per a January, 2022 article from BusinessInsider.com, titled “Bed Bath & Beyond is Closing 37 Stores and Liquidation Sales Have Already Started. Here's the Full List,” the company‘s long-term survival is questioned: A spokesperson for the retail chain confirmed in an email to Insider that it plans to close 37 stores across 19 states in the US. Liquidation sales have begun at these locations, in preparation for closure at the end of February. The store closings form part of a plan it announced in 2020 to shut 200 "redundant" stores over the following two years as part of its turnaround effort after several years of sliding sales.
Today, in the throes of that report, comes considerably more concerning news for the chain, which was founded in 1971.
Let us explore further.
Bed Bath & Beyond, 2022
The news of Bed Bath & Beyond’s most recent business reversal has been reported by the media as a deleterious turn for the company.
According to Finance.Yahoo.com’s piece of earlier today, “Bed Bath & Beyond Stock Tanks After Cutting Staff, Closing Stores, and Floating Share Sale,” the news could not be much worse for the long-beleaguered business: Bed Bath & Beyond (BBBY) stock is getting smoked early Wednesday as investors get more clarity on the mess facing the struggling retailer. On Wednesday morning, in an SEC filing and a press release ahead of an investor presentation, the company outlined plans to issue more stock, close 150 stores, and fire 20% of its staff as the retailer looks to stem the bleeding from a collapse in sales. Shares of the retailer were down more than 24% in early trading as of 9:38 AM ET.
CNN.com reported similarly, in “Bed Bath & Beyond is Making a Last-Ditch Effort to Save Itself,” indicating analyst pessimism is at a peak for the company’s long-term survival.
As excerpted from the article: Bed Bath & Beyond is in deep turmoil. The company is trying to rescue itself and stay out of bankruptcy by shrinking. The chain said Wednesday that it will lay off approximately 20% of corporate employees, close around 150 stores and slash several of its in-house home goods' brands.
The locations are expected to close imminently, due to under-performance and related business issues.
Conclusion
The Bed Bath & Beyond chain is presently undergoing a turnaround strategy unlike others in its storied existence, as the company by most accounts is fighting for its survival.
Should any further updates be reported on the health of the chain, I will share them here, on NewsBreak.
Thank you for reading.
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