The big question has become: Will Bed Bath & Beyond run out of money?
While the company revealed drastic steps on Wednesday to raise cash ($500 million in debt + a potential 12 million share sale), cut expenses (close 150 stores/can 20% of the workforce), and alter the sales trajectory (promoted new leaders to Bed Bath & Beyond and buybuy BABY banners), Wall Street thinks the retailer’s outlook remains highly uncertain.
The main concern is that Bed Bath & Beyond is performing so poorly — same-store sales fell 26% in the most recent quarter — and the balance sheet is in such sorry shape that the company will be forced to raise even more cash in 2023. Where and when (and at what cost) that cash comes from is a great unknown.
A man reads a pamphlet about cookware while shopping inside of a Bed Bath & Beyond store in New York April 13, 2011….