Bed Bath & Beyond, the popular home goods retailer, is closing dozens more stores and liquidating inventories.
The company recently announced that it has "substantial doubt" about its future, and is considering filing for bankruptcy. The past few years have not been easy for Bed Bath & Beyond, with the company announcing that it would be closing 200 underperforming stores over the next two years amid sinking sales numbers.
However, despite its shrinking footprint, the retailer announced it would shut down another 150 "lower-producing" locations.
Despite the store's best efforts, it appears as though it's continuing to shutter more of its outposts. On Jan. 10, Bed Bath & Beyond released an updated list of more than 120 store closings, adding 62 new locations to the 56 it initially singled out in September. The changes will affect 30 states, with California topping the list with eight closures, Florida losing six locations, and Michigan losing five.
While no exact final shopping date has been announced, select stores from the updated list said that they expected to close sometime in March. Some of the listed Bed Bath & Beyond locations may also have already closed, while others were liquidating their inventories with deep discounts in their final weeks.
However, many of the surviving stores that are slated to close have stopped accepting coupons or processing returns.
The true image of the company's financial woes came more into focus when it released its quarterly results on Jan. 10, which includes the all-important holiday shopping season. The figures painted a grim picture, with the retailer reporting a drastic 33 percent drop in net sales compared to last year alongside an identical decline in online sales. The company said its adjusted operating losses were $225 million, with only $153.1 million left in cash on its balance sheet.
The retailer also appears to be losing its vital stream of customers. Researchers at foot traffic analytics firm Placer.ai found a 26.5 percent drop in customers this December compared to the same month the previous year.
It is clear that Bed Bath & Beyond is in a dire financial situation. The company's announcement that it has "substantial doubt" about its future and is considering filing for bankruptcy is a major blow to its remaining prospects.
The store closures and liquidation of inventories are a clear indication of the company's struggles. However, it is uncertain what the future holds for the home goods retailer.
What Are Your Thoughts?
Have you been affected by the store closures of Bed Bath & Beyond? What do you think is the reason for the downfall of Bed Bath & Beyond? Have you noticed a decline in the company's customer service or product quality?
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