A Scenario Bed Bath & Bust could bring short-term financial hardship to rival home furnishings retailers amid aggressive nationwide liquidation sales, an expert has warned.
In the short term, liquidation [would be] a little hard on JC Penney, Kohl’s, Target, Walmart, Wayfair and maybe Container Store – and to some extent maybe Macy’s – because someone like [liquidator] Gordon Brothers will be holding a very aggressive liquidation sale,” a retail expert said. Jan Rogers Knife told Yahoo Finance.
The potential of Bed Bath & Beyond (BBBY) to go bankrupt in 2023 looking high.
Bed bath and beyond said Thursday that bankruptcy is on the table as it scrambles to shore up its leaky balance sheet after a disastrous holiday shopping season.
The Company continues to consider all strategic alternatives, including restructuring or refinancing its debt, seeking additional debt or equity capital, reducing or delaying the Company’s business activities and strategic initiatives. , or the sale of assets, other strategic transactions and/or other actions, including obtaining relief. under the U.S. Bankruptcy Code,” Bed Bath & Beyond said in a statement.
“These measures may not be successful,” the company added, noting that there is “substantial doubt” about its ability to continue as an “active business.”
For its fiscal third quarter ending November 26, 2022, sales fell more than 30% to $1.259 billion from $1.878 billion in the same quarter last year. The company said the numbers reflect “decline in customer traffic and reduced levels of inventory availability, among other factors.”
Bed Bath & Beyond expects to report a net loss of $385.8 million for the quarter.
Meanwhile, the retailer’s shares tumbled nearly 30% in Thursday’s session and then another 22% on Friday, putting the stock at all-time lows. since 1992.
Bankruptcy pros aren’t ruling out a Bed Bath & Beyond filing happening this month.
“I think it’s inevitable that they’ll file,” Macco CEO Drew McManigle said. said on Yahoo Finance Live. “I wouldn’t be surprised to see them file as early as this weekend. There’s no reason not to. I suspect they’ve been working on financing their debtor-in-possession.”
Asked about the issue of bankruptcy, the spokesperson for Bed Bath & Beyond Julie Strider told Yahoo Finance: “Since launching Bed Bath & Beyond Inc.’s comprehensive turnaround plan at the start of the third quarter, which included financial actions to improve our balance sheet and cash flow, we have worked with strategic advisors to assess all avenues to regain market share and improve liquidity, our stated priorities other measures No decision has been made at this time.
Either way, Kniffen ultimately believes Bed Bath & Beyond’s rivals will quickly rally to any widespread sell-out.
The reason for this, Kniffen explained, is that Bed Bath & Beyond has brushed with irrelevance in the minds of shoppers for years due to merchandise fulfillment issues.
“Six months later, these same players will see marginal market share gains,” Kniffen added. “But this company has been losing market share for twenty years now. I don’t see how there are really any winners worth calling out. That just can’t move the needle for anyone. Of course .”
Click here for the latest stock market trends from the Yahoo Finance platform
Click here for the latest stock market news and in-depth analysis, including events moving stocks
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance app to Apple or android
Follow Yahoo Finance on Twitter, Facebook, instagram, Flipboard, LinkedInand Youtube
0 Comments