Bed Bath & Beyond bankruptcy might be next, retailer warns

Bed Bath & Beyond warned Thursday that its financial crisis threatens the future of the company.

Driving the news: The beleaguered retailer said in a public filing that it faces “substantial doubt” about its ability to continue operating on its own — and that it could file for bankruptcy protection.

Why it matters: Once a staple in the American shopping landscape — known for its towers of towels, wedding registries and a useful array of home goods — Bed Bath & Beyond still had some 32,000 employees and 955 stores as of last summer.

• That included the company’s other properties: buybuy Baby and Harmon.

State of play: Bed Bath & Beyond has been distressed for years, having failed to reinvent itself in the digital age.

• The retailer said Thursday that it expects to report a 33% sales decline in the quarter that ended Nov. 26, “driven by lower customer traffic and reduced levels of inventory availability, among other factors.”
• The company also said it expects to report a net loss of $386 million, up from $276 million a year earlier.

Context: Bed Bath & Beyond has dealt with disruption in the executive ranks, excess inventory and a variety of failed strategies, including an attempt to declutter its stores.

• The company has also attracted the interest of meme stock traders inspired by a one-time investment of GameStop chair Ryan Cohen, but the stock plunged after Cohen sold off his shares.

What they’re saying: “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 selling assets, other strategic transactions and/or other measures, including obtaining relief under the U.S. Bankruptcy Code,” the filing stated.

• “These measures may not be successful.”