How Bed Bath & Beyond Has Dodged Bankruptcy for Now
Phil Camporeale is JPMorgan’s managing director. Scott Bauer, Prosper Trading Academy CEO, and Paul Reilly, CEO of Raymond James, discuss if it’s time for investors to get into the market during ‘The Claman Countdown’.
Bed Bath & Beyond Continues to avoid bankruptcyAfter implementing a series financial moves that included raising $1 billion through preferred stock and closing all of its Canadian stores, the company was finally able to close down.
On October 1, 2021, people walk by a Bed Bath & Beyond store in Tribeca in New York City. (Michael M. Santiago/Getty Images/Getty Images
Tyler Dischinger, Buchanan’s Pittsburgh bankruptcy lawyer, spoke to FOX Business in an interview. “The billion-dollar cash raise was a Hail Mary.”
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BBBY | BED BATH AND BEYOND INC. | 1.81 | +0.01 | +0.56% |
BED BATH AND BEYOND MOVES TO SECURE 1B TO AVOID BANCRUPTCY
“The market anticipated a bankruptcy filing by the end of the first quarter, but that seems less likely now,” He continued. “It’s hard to put a timeframe on their additional runway, but the company will use this time to get on good terms with lenders while continuing to shrink their brick-and-mortar footprint.”
BED BATH AND BEYOND REPORTEDLY SELECTING ASSETS
“Cost-cutting and financial moves have bought them some time, but it’s too early to see if it’s a little too late,” He finished.
Bed Bath & Beyond
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A Court filing It shows that the Canadian division has 54 stores and 11 BuyBuy Baby locations, with 387 full-time and 1 038 part-time jobs. According to the filing, Bed Bath & Beyond Canada can’t restructure operations without American support and its lenders.
BED BATH & BEYOND SALES SINK, CAN CLOSE 150 STOCKES
The retailer issued a disappointing third quarter earnings report in January. Net sales dropped 33% to $1.259 billion, while comparable sales declined 32% due to a 70% drop of customer traffic. It also announced plans to close 150 stores by fiscal 2022. In addition, it initiated incremental cost reductions of $80 million to $100 millions, including overhead expenses and headcount.
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The retailer is on track to save approximately $500 million annually due to its expense reductions, according to the report.
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