Prior to word of an October 4th stock raise upon news of bondholder organization, company value has been down 58% from the same period in 2021.
This article is based on current media reports. All listed facts and projections shared within this article are fully-attributed to outlets including Wikipedia.com, Finance.Yahoo.com, CNN.com, and Barrons.com.
I have written extensively on the status of Bed Bath & Beyond for NewsBreak since word of the suicide of the company’s CFO Gustavo Arnal. See “Bed Bath & Beyond CFO Dead: Exec Leaps From New York City Tower Days Following Announcement of 150 Store Closures,” and “List of 56 Bed Bath & Beyond Locations Announced Today as Permenently Closing” for information on recent matters that continue to threaten the survival of the company.
Bed Bath & Beyond was founded in 1971, and for many years was among the most successful of all specialty retailers. The entity had been substantially downgraded in terms of value and popularity prior to the advent of COVID-19, and since the pandemic has been beset by issues that have left its future in doubt, according to most recent financial reportage.
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Bed Bath & Beyond, 2022
According to Finance.Yahoo.com, entitled “Bed Bath & Beyond Stock is Worth $2, Goldman Warns,” the prognosis for the company’s long-term survival is pessimistic.
As excerpted from the article: Bed Bath & Beyond remains on its last legs as a company and will have major difficulties turning itself around, suggests new research from Goldman Sachs analyst Kate McShane. The struggling retailer's most recent quarter underscores its precarious fundamental position before the peak holiday shopping season. Comparable store sales crashed 26% from a year ago as the economic slowdown and poor inventory quality weighed on store traffic. The challenged top line and increased discounting led to the company posting an operating loss of $168 million in the quarter. Bed Bath & Beyond stock is down 58% so far in 2022.
Other media outlets have shared this appraisal. Per CNN.com’s “Bed Bath & Beyond is Failing Fast,” the chances of a successful company turnaround are slim: Bed Bath & Beyond is losing shoppers and money at a rapid clip, and the company will need to quickly reverse course to avoid bankruptcy. The struggling chain announced Thursday that sales at stores open for at least a year plunged 26% during its latest quarter ending August 27. The company also lost $366 million in that period and profits fell as the chain discounted merchandise to clear shelves.
As largely negative as recent word is, however, the fate of the company is not assured. In an October 4th piece from Barron’s.com, “Bed Bath & Beyond Stock Rises as Bondholders Said to Be Organizing,”the following was reported: Shares of Bed Bath & Beyond jumped in premarket trading on Tuesday following a report that bondholders are organizing in a bid to protect their investments in the battered retailer. Holders of Bed Bath & Beyond ’s (ticker: BBBY) 2024 unsecured notes are working with Perella Weinberg Partners, a New York based financial services firm, according to a report by The Wall Street Journal that cited people familiar with the matter. The move comes a week after the company said it was considering liability management transactions focusing on the 2024 bonds.
The article went on to state: “Transactions could be launched in the third quarter of fiscal 2022 and could include offers to exchange our current debt for new longer tenured debt or equity at exchange ratios related to the then-current value of the current debt,” the company said in a quarterly filing with the Securities and Exchange Commission.
It should be noted the Barron’s report includes projections as well as real-time numbers.
As ever, I will continue to post updates on the status of Bed Bath & Beyond as news happens, here on NewsBreak.
Thank you for reading.