![]() ![]() In late January, it noted in a government filing it was in default of its loans and didn’t have the funds to repay what it owes. The home goods retailer had been issuing several warnings about a potential bankruptcy filing since early this year. The company also said in a Securities and Exchange Commission filing in late March that it planned to sell $300 million worth of shares to avoid bankruptcy filing. In late March, it noted that preliminary results showed anywhere from a 40% to 50% decline in sales at stores opened at least a year for the quarter ended Feb. Its financial performance has also deteriorated. The bankruptcy filing comes as the company’s shares have tumbled even more as speculation of an impending bankruptcy filing increased. This past holiday season, the stores were missing many key items, and it lost many customers, a problem that continued to plague the retailer through the winter and spring seasons. But the company has had a hard time having suppliers commit to delivering merchandise because of the retailer’s financial woes. In recent months, the company, under the stewardship of recently appointed president and CEO Sue Grove, went back to its original strategy of focusing on national brands, instead of pushing its own store labels. The retailer ousted Tritton in June 2022 after two back-to-back quarters of disastrous sales. And while many retailers were grappling with supply chain issues a year ago, Bed Bath was among the most vulnerable, missing many of its 200 best-selling items including kitchen appliances and personal electronics, during the holiday 2021 season. It was never able to use the health crisis to pivot to a successful online strategy as others had, analysts said. Tritton quickly reduced coupons and started to introduce store label brands at the expense of national labels, a strategy that proved disastrous for the retailer.Īnd the pandemic, which happened shortly after his arrival, forced the retailer to temporarily close its stores. In late 2019, Bed Bath & Beyond tapped Target executive Mark Tritton to take the helm and turn around sales. Meanwhile, online players like Wayfair have lured customers with affordable and trendy furniture and home décor. It was among the first to introduce shoppers to many of today’s household items like the air fryer or single-serve coffee maker, and its 15% to 20% coupons were ubiquitous.īut for the last decade or so, Bed Bath & Beyond struggled with weak sales, largely because of its messy assortments and lagging online strategy that made it hard to compete with the likes of Target and Walmart, both of which have spruced up their home departments with higher quality sheets and beddings. Founded in 1971, Bed Bath & Beyond had for years enjoyed its status as a big box retailer that offered a vast selection of sheets, towels and gadgets unmatched by department store rivals. ![]()
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