Bed Bath & Beyond Warns of Possible Bankruptcy Filing
Posted on January 7, 2023
Bed Bath & Beyond has warned of a possible bankruptcy filing in a recent news release. The company may have to sell assets, restructure and/or file bankruptcy. The company also operates the Buy Buy Baby and Harmon Face Values websites.
The release says, "While the Company continues to pursue actions and steps to improve its cash position and mitigate any potential liquidity shortfall, based on recurring losses and negative cash flow from operations for the nine months ended November 26, 2022, as well as current cash and liquidity projections, the Company has concluded that there is substantial doubt about the Company's ability to continue as a going concern."
The press release also describes a turnaround plan but shares of the company fell after the announcement. A CNBC story notes the retailer has suffered from supply chain related inventory issues.
Meanwhile, a CNN story is warning Bed Bath & Beyond customers to use their Bed Bath & Beyond coupons. The article notes that the retailer's popular oversized Big Blue coupons may have hurt the company because customers ended up hooked on them.
Coupons are sometime honored for a limited time after a bankruptcy but it depends on the bankruptcy details and whether or not the company plans to restructure. Hopefully, the retailer will be able to find a path forward. The Wall Street Journal says Bed Bath & Beyond is currently in the early stages of planning for a Chapter 11 bankruptcy filing which would mean the retailer could survive but might close some of its stores.