The end may be near for struggling retailer Bed Bath & Beyond, which warned in a regulatory filing on Thursday that it had received a default notice from its creditor, JPMorgan Chase. Shares in Bed Bath & Beyond fell more than 20% on the news to about $2.56 a share.
The company said in its filing to the SEC – Security and Exchange Commission (the United States CVM) on Thursday that “at this time, the company does not have sufficient resources to pay the amounts of the credit lines and this will lead the company to consider all strategic alternatives, including restructuring its debt under the U.S. Bankruptcy Code.”
Bed Bath & Beyond defaulted “on or around” Jan. 13, according to the Securities and Exchange Commission filing. As a result, creditors are demanding immediate payment.
Bed Bath & Beyond may be forced to file for Chapter 11 bankruptcy reorganization due to its financial problems.
The company added that it is also cutting costs, reducing capital expenditures and closing stores and distribution centers.
Founded in 1971, Bed Bath & Beyond has become a staple for affordable home decor, kitchenware, and college dorm furniture. The retailer was known for its ubiquitous blue 20% off coupons and stores crammed with merchandise piled high to the ceiling.
But the company has struggled to transition to online shopping and fend off larger chains like Walmart and Target. Many shoppers switched to these competitors when the Bed Bath & Beyond coupon novelty wore off – consumers can find plenty of cheaper alternatives on Amazon and other sites online.
The company was also hit hard during the pandemic, temporarily closing stores in 2020 while rivals stayed open. The company lost 17% of its sales in 2020 and 14% in 2021.
Bed Bath & Beyond has gone through a number of different executives and turnaround strategies in recent years, including former Target executive Mark Tritton, who left the company last year after less than three years as CEO.
As of February 2022, Bed Bath & Beyond has 950 stores and 32,000 employees. The company also owns children’s retailer buybuy Baby.
Source: CNN Brasil
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