Subscribe to The Daily Upside newsletter for more vivid and insightful business and economic news. It’s completely free and we guarantee you’ll learn something new every day.
Somebody buy me millions of loofahs, quick!
Bed Bath & Beyond, a home goods giant that generously accepts coupons that have passed their expiration date, told shareholders on Thursday that bankruptcy is possible. wall street journal A reported source confirmed that the company is indeed in the early stages of preparing a Chapter 11 filing. College students everywhere are weeping so they don’t have to switch to IKEA.
Tastefully decorated walls have been adorned with lettering for years, thanks to retail chains’ reliance on large brick-and-mortar store footprints. The company’s relationship with its suppliers is tumultuous, to say the least. In 2020, BB&B stopped selling national branded products and focused on its own private label, but pulled back after two years.
“It’s been tough trying to convince a vendor you just kicked off the chain to sell a product to Bed, Bath & Beyond who doesn’t know if they can pay you,” says retailer Jeff Macke. Daily Upside.
BB&B didn’t just slide, it plummeted and hit every rock. Adding to the quagmire is the constant confusion among BB&B’s top brass. Last year, the company’s board ousted his CEO Mark Tritton, abolished the roles of COO and chief store officer, and CFO Gustavo, shortly after announcing the closure of 150 floors and his 20% reduction in staff. Arnal passed away tragically.. Additionally, everyone’s favorite Canadian meme entrepreneur, Ryan Cohen, capitalized on the popularity of the company’s meme stock by acquiring an activist stake, making nearly $70 million a few dollars after the stock skyrocketed. It walked away months later, causing its stocks to crash.
- BB&B expects record loss of $386 million in latest quarter on lower sales and slowing foot traffic, nearly 30% off last year’s $276 million hit . It had revenue of $11.35 billion in 2019, but dropped to $8.34 billion two years later.
- BB&B was valued at $2.41 a share on Wednesday, but after Thursday’s announcement, the stock plunged 30% to close at $1.68 a share. This is a level not seen since his 1992 IPO. I wouldn’t be surprised if BB&B filed for bankruptcy “as early as this weekend.”
you got what i needed: Bed Bath and Beyond isn’t beyond that kind of store, at least when it comes to rough patches. Wayfair said in its latest report that the number of active customers in the third quarter was down 23% and sales were down 9% compared to the same period last year. And while IKEA is posting strong sales numbers, it still faces serious supply chain problems due to the coronavirus lockdown and invasion of Ukraine. Instead of buying new ones, consumers seem to go back to the old ways of picking up free sofas on the side of the road.