How Bed Bath & Beyond Has Dodged Bankruptcy for Now
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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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