A Bath Scenario and Bed Bust It could spell some near-term financial trouble for rival home furnishings retailers amid aggressive go-ahead liquidation sales across the country, an expert has warned.
“In the short term, the liquidation [would be] kinda hard on JC Penney, Kohl’s, Target, Walmart, Wayfair, and maybe the Container Store, and to some degree maybe Macy’s, because someone like [liquidator] Gordon Brothers will be running a really aggressive clearance sale,” the retail expert said. Jan Rogers Kniffen he told Yahoo Finance.
The potential of Bed Bath & Beyond (BBBY) to go bankrupt in 2023 looks high.
bed bath and beyond said thursday that bankruptcy is on the table as he works to shore up his leaky balance sheet after a disastrous holiday shopping season.
“The Company continues to consider all strategic alternatives, including restructuring or refinancing its debt, seeking debt or equity capital, reducing or delaying the Company’s business activities and strategic initiatives, or selling assets. , other strategic transactions and/or other actions, including obtaining relief under the United States Bankruptcy Code,” Bed Bath & Beyond said in a statement.
“These measures may not be successful,” the company added, noting that there is “substantial doubt” about its ability to continue as a “going business.”
For its fiscal third quarter ending November 26, 2022, sales fell more than 30% to $1.259 billion from $1.878 billion in the same quarter last year. The company said those numbers reflected “lower customer traffic and reduced levels of inventory availability, among other factors.”
Bed Bath & Beyond expects to report a net loss of $385.8 million for the quarter.
Meanwhile, the retailer’s shares plunged nearly 30% in the Thursday session and then another 22% on Friday, putting the shares at levels never seen before. since 1992.
Bankruptcy professionals are not ruling out a Bed Bath & Beyond filing this month.
“I think it’s inevitable that they will sign up,” Macco CEO Drew McManigle. said on Yahoo Finance Live. “I wouldn’t be surprised to see them apply as early as this weekend. There’s no reason not to. I suspect they’ve been working on their debtor-in-possession financing.”
When asked about the bankruptcy issue, Bed Bath & Beyond spokesman Julie Strider told Yahoo Finance: “Since we began Bed Bath & Beyond Inc.’s comprehensive turnaround plan early in the third quarter, which included financial actions to improve our balance sheet and cash flows, we have been working with strategic advisors to assess all paths such paths may include restructuring or refinancing our debt, seeking additional debt or equity capital, reducing or delaying the Company’s business activities and strategic initiatives, or selling assets, other transactions strategies and/or other measures.”
In any case, Kniffen ultimately believes that Bed Bath & Beyond’s rivals will quickly recover from any sweepstakes going out of business.
The reason for this, Kniffen explained, is that Bed Bath & Beyond has bordered on irrelevance in buyers’ minds for years due to merchandise execution issues.
“Six months later, those same players will see some marginal market share gains,” Kniffen added. “But this company has been losing market share for twenty years. I don’t see how there are really winners worth mentioning. It just can’t move the needle for anyone. Some of the share will also go online to Amazon, of course. “
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