Bed Bath & Beyond may be approaching its final days in business. It may not have enough money to meet its next payroll. It already has defaulted on some debt payments. In some stores, shelves are nearly vacant because it cannot pay suppliers. By a recent estimate, 30,000 jobs are at risk.
[in-text-ad]
The company started to fall apart about a year ago. Its revenue began to crater at a rate of over 20% year over the previous year. Soon, revenue fell below expenses. Losses ate into its already minimal capital. A chief executive officer left, a temporary one came and that temporary one became full-time. There was a turnstile among other senior executives. It became even harder to turn around a company with top management in such turmoil.
Despite the best efforts of new management, Bed Bath & Beyond already was beyond saving. Its sales disintegration began to look like those at J.C. Penney, Sears and Kmart in their final months. Stores were rapidly closed, which made it hard for customers to travel to nearby locations. (Click here for 25 classic American brands now owned by foreign companies.)
There are several theories about why Bed Bath & Beyond has fallen apart. One is that it stocked its shelves with products fewer and fewer people wanted. Another is that it was overwhelmed by the size and consumer choices at places like Walmart and Target. Another was that Amazon was to blame. The huge online retailer takes this blame any time a retailer starts to spiral downward, whether or not the accusation is true.
24/7 Wall St.One thing is sure. Bed Bath & Beyond will get smaller right away and may disappear shortly. Debt holders may do relatively well. The same will not be true for common shareholders, although they still make risky trades of the company’s shares. No matter what, the employees will be badly injured, and there are about 30,000 of them by the latest count.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.